Citi Cranks Up Its Odds Of Greece Leaving The Euro...

oedipus greece

Photo: Oedipus Cursing His Son, Polynices, 1786

From Greek parliamentary elections delivered a fragmented result that highlighted growing public opposition to austerity, foreshadowing significant challenges ahead at forging the political consensus necessary to keep the country in the euro, according to a report published by Citi on May 7th.

Even considering the push for a growth agenda among European leaders, including newly elected French President Francois Hollande, Citi sees significant potential for a new Greek government to miss the next round of targets and a rising risk of a Greek exit (“Grexit”) from the euro within the next 12 to 18 months, and increase our probability of this occurring from 50% to between 50-75%.

This definitely seems to be Wall Street sell-side consensensus.

Deutsche Bank and Goldman have said more-or-less the same thing, that the election result throws everything into turmoil.

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