Obama Administration Deems Grexit 'Geopolitical Mistake'

Southeast Europe | July 9, 2015, Thursday // 11:59|  views

US Treasury Secretary Jack Lew Photo: EPA

US Treasury Secretary Jack Lew has stated the official position of the US administration regarding the Greek financial crisis Wednesday.

"There's a lot of unknowns if this goes to a place that completely melts down in Greece," Lew said, as quoted by the Economic Times. Such an action would be, in his words, "geopolitically a mistake." 

A Grexit would bring about an even deeper geo-political crisis on the Southeast European country. 

European officials have stated divided opinions on the crisis, with some urging Greece to abandon the euro, while others appealed to them for more efforts in the direction of dealing with debt.

In the words of Lew, there has been a ‘’ deep reluctance’’ on the part of European players to change the debt terms for Greece into more realistic and favorable ones. Greece on the other hand needs to provide credible promises and commitment, as the country is ‘’near the verge of running out of money’’. 

Greek bank crisis is currently entering a new stage, as people are lining up in front of local banks and withdrawing their money. Several groups, including retired people have been issued priority tickets and will be the first allowed to close their accounts. 

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Tags: US, greece, EU, Grexit, financial crisis, banks, Jack Lew


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