03 Jul 2015

The Greek economy is unlikely to benefit from further devaluation

Cinzia Alcidi / Daniel Gros

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In the run up to the Greek referendum this Sunday, CEPS economists Cinzia Alcidi and Daniel Gros find that there is no good option for the country: either be engulfed in the chaos following the rejection of the programme, exit from the Eurozone and collapse of the economy or accept another programme. Even the benefits that one might expect from the expansion of the tourism sector in Greece may may not be enough for its salvation, according to the key indicators the authors present.

Cinzia Alcidi is LUISS Research Fellow and Head of the Economic Policy research unit at CEPS. Daniel Gros is Director of CEPS. A shorter version of this commentary first appeared in the Letters to the Editor of the Financial Times, 2 July 2015.