A “Grexit” is officially on the table.
On Sunday, the latest draft from the Eurogroup outlining what Greece must do to restart negotiations with its European creditors on a new bailout surfaced.
The Financial Times posted the full draft here and the most important part is the end.
“In case no agreement could be reached,” the document reads, “Greece should be offered swift negotiations on a time-out from the euro area, with possible debt restructuring.”
On Twitter, Karl Whelan, an economics professor at the University of Dublin who formerly served on the Federal Reserve board and as an economist at the Central Bank of Ireland, noted that this sentence about a “time-out” from the euro is a “huge sweetener designed to boost support for Grexit in Greece.”
Whelan added that the, “German strategy appears to be to set conditions that won’t be met and force Grexit.”
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