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"Many German politicians are still leaning towards Grexit" - Dr Dennis Novy

Dr Dennis Novy, Associate Professor of Economics at the University of Warwick, says that while "a new bailout deal will likely be reached between Greece and its creditors" and that the political climate in Brussels has improved", many German politicians are still leaning towards Grexit and the IMF is not on board.

Dr Novy's comment in full:

"A new bailout deal will likely be reached between Greece and its creditors. It is good news that the political climate in Brussels has improved. But many German politicians are still leaning towards Grexit. The IMF is not on board.

"Most importantly, the underlying economic problems have not been addressed. The package will hardly support the growth of the Greek economy. Instead, we will likely see more belt-tightening at exactly the wrong time. The package seems designed so that Greece can meet its payment to the European Central bank.

"The long-term Eurozone problems linger. The Greek economy continues its painful slow internal devaluation, while Germany continues to generate a huge trade surplus. The latest deal doesn't do anything to address these imbalances."

11 August 2015

To speak with Dr Novy please contact:

Tom Frew, International Press Officer

Tel: +44 (0)247 657 5910

Mob: +44 (0)7785 433 155

Email: a dot t dot frew at warwick dot ac dot uk

Dr Dennis Novy

Email: d dot novy at warwick dot ac dot uk