Why the Greek government declined a holiday from the euro

Grexit no longer represents the potential catastrophe that it once did. After all, the main short-term cost has already materialised, writes Daniel Gros.

FOR the entire first half of this year, since the far-left, anti-austerity Syriza party came to power in January, the Greek saga virtually monopolised the attention of European policymakers.

Even as their country’s economy crashed, Greece’s new government remained adamant in demanding debt relief without austerity — that is, until mid-July, when it suddenly agreed to the creditors’ terms.