The escalating Greek crisis is raising question marks over the country’s membership of the euro.
German chancellor Angela Merkel broke from standard discourse when she said last week that the Greek crisis was putting “great, great pressure” on the eurozone.
European finance ministers are expected to tell Athens tomorrow to clean up its accounting practices and improve the administration of key institutions.
The European Commission published a damning report on Greece’s “unreliable” economic figures last week, increasing the chances that the EU executive will launch infringement proceedings against the country.
The Greek government unveiled a three-year crisis blueprint last week to reduce its €30bn (£26.5bn) public deficit and rein in government debt estimated to top €294bn this year.
Former IMF and Wall Street analyst Desmond Lachman suggested last week that Greece could go the way of Argentina.
“Much like Argentina a decade ago, Greece is approaching the final stages of its currency arrangement,” he said. “There is every prospect that within two to three years...Greece’s European membership will end with a bang.”