A euro exit is the only way out for Greece

Commentary feature by a group of German professors of economics who took the German government to the German constitutional court in 1998 over Germany’s entry into the euro.

They argue that if eurozone governments provide assistance to Greece in a manner that contravenes the no bail-out rule, they would have no hesitation in lodging a new lawsuit at the constitutional court to enjoin Germany to depart from monetary union.

The writers conclude 'the Greeks have no way out but through the exit door. Restoring the drachma at a lower exchange rate would help exports and lift revenues from tourism. It would also send a message to other countries that they have to take serious steps to avoid landing in a similar predicament. Loss of confidence in Greek economics imperils all of Europe. Removing Greece from the euro provides a way of preventing a drama from becoming a tragedy – and of ensuring the survival of monetary union'.

ESO: Background information: Eurozone agrees to Greek rescue deal http://www.europeansources.info/record/greek-deal-hammered-out-at-summit-eurozone-agrees-to-greek-rescue-deal/

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