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The Greek debt trap: an escape plan

Darvas, Zsolt, (2012), ‘The Greek debt trap: an escape plan’, www.bruegel.org, 9 Νοεμβρίου.

Without corrective measures, Greek public debt will exceed 190 percent of GDP, instead of peaking at the anyway too-high target ratio of 167 percent of GDP of the March 2012 financial assistance programme. The rise is largely due to a negative feedback loop between high public debt and the collapse in GDP, and endangers Greek membership of the euro area. But a Greek exit would have devastating impacts both inside and outside Greece.