What’s the ‘Grexit’ strategy of Europe’s common currency? In a now famous 2012 speech that vowed to do whatever it took to put a floor under the single currency, stocks and bonds, European Central Bank president Mario Draghi said that “the euro is irreversible.”
Fast forward three years and that pledge is in doubt. After a dizzying and dramatic weekend of headlines, the odds of Greece leaving the euro have shot up, putting the common currency under renewed selling pressure.
When it comes to the euro’s future, there are two key questions. Will Greece indeed leave the ‘irreversible’ common currency? If it does, what could it mean for the euro’s value and viability?