With the announcement of the referendum in Greece, a Greek exit from the euro area has become a possible scenario. A so-called “Grexit” would have a high price for both sides. The other euro area members should be ready to take steps that would reestablish the credibility of the euro area as a monetary union built to last. If markets perceive the euro area as just another system of fixed exchange rates that countries can leave and join freely, this can drive the monetary union apart.
