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The Russian economy is heading for a long recession. Economic collapse, which could still occur, is not in the West's interests.
Charles Grant discusses three challenges facing the EU in 2015: the combined problems of Russia and Ukraine; the continuing fragility of the eurozone; and the growing risk of Brexit.
Με τη νέα ελληνική κυβέρνηση να προετοιμάζεται για τις διαπραγματεύσεις με την τρόικα, η θέση της Γερμανίας ιδίως έχει γίνει αντικείμενο συζήτησης τόσο στην Ελλάδα όσο και στις αγορές.
With the new government in Greece preparing for the negotiations with the troika, the German position in particular has been a topic of debate, both in Greece and on markets.
Greece is not at imminent risk of leaving the euro. But the negotiations will be difficult and uncertainties over Greece's membership will persist.
Charles Grant says there is a window of opportunity for Greece's new prime minister to renegotiate, however staunch the German resistance to softening austerity might appear.
Quantitative easing alone will do little to boost the eurozone economy. The ECB needs to shift expectations and this requires a different approach to monetary policy.
Neither Greece nor the eurozone want Grexit, and it is unlikely to happen. But neogiations will be difficult and uncertainties over Greece's membership will persist.