Wall Street Journal: Syriza’s challenge now is the empty Greek Treasury

tsipras_sygkentrosiThe big challenge now for Syriza lies in Greece’s empty treasury, and in a game of chicken with Europe, says a report in Wall Street Journal (WSJ).

Greece—one of 19 countries that use the euro—needs billions of euros in coming months from other eurozone governments and the International Monetary Fund to avoid defaulting on public debts.

Greek banks also need continual liquidity from the European Central Bank. Europe’s current bailout plan for Greece expires on Feb. 28. A successor can’t wait too long, WSJ claims.

Unless Syriza caves in, and is helped by face-saving concessions by Europe, Greece risks running out of money by summer or earlier. That looming prospect would have the potential to trigger bank runs and capital controls.

If Greece can’t finance its government or banks in euros, it would be forced to print drachmas, says the American paper.

Wall Street Journal

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