What happens if Greece can’t pay its debts?

The standoff between a leftwing government and the financial powers of the EU is near to breaking point. What if the worst happens?

This time it’s real: Greece has wriggled out of looming national bankruptcy on numerous occasions over the past five years, but now it has just a few weeks left before it must sign a new debt deal with its eurozone partners and the IMF – or find itself heading for an exit door that leads back to the drachma.

On Friday, after a meeting of eurozone finance ministers in the Latvian capital Riga, the signs were ominous. Malta’s finance minister Edward Scicluna, said: “I would describe today’s meeting as a complete breakdown in communication with Greece.” Continue reading