While rumors abound about Greece leaving the euro, EU leaders are still standing by the country with many saying they’d prefer it if they stayed in the currency. German Chancellor Angela Merkel, however, still says while she believes it’s in the EU and Greece’s best interests for the country to remain, she also expects Greece to stand by the commitments it signed onto when it agreed to current economic bailout terms.
However, behind the scenes, things seem to be happening a little differently with some officials saying they’re being told their countries must have a plan ready to put into place should Greece and its citizens decide the euro isn’t for them.
The uncertainty is expected to worsen over the next three weeks, with the run-up to the June 17th Greek election. If Greeks vote for anti-euro, anti-bailout parties, that would start the ball rolling towards them pulling out of the European currency. That eventuality could then worsen things for larger economies like Spain and Portugal, who are also struggling with massive unemployment and stagnant economies and, eventually, could be catastrophic for the whole European region.