The idea of launching a parallel currency alongside the euro to solve Greece's problems is bound to fail. A transitory regime, a smoke-and-mirrors version where nobody knows precisely whether Greece is in or out, would be a better option. A parallel currency that acts as a medium of exchange but not necessarily as a store of value or unit of account, with its denomination being the euro, would be the preferred choice. However, launching a fully independent currency may send a strong signal to financial markets that the government in Athens was preparing the way for Greece to slide out of the euro, causing financial markets to start pulling out as many euros as they could and external creditors to likely refuse to roll over their loans on fear that they would not be able to be paid back.
# Greece
Greek Prime Minister Alexis Tsipras held 'friendly and constructive' debt talks with the leaders of France and Germany Thursday, but gave no sign of a breakthrough ahead of a crucial June deadline. The three 'agreed on the need for the Greek authorities to keep working with the three institutions', the aide said, referring to Athens' 'troika' of creditors — the European Union, the European Central Bank, and International Monetary Fund.
German Chancellor Angela Merkel said Friday there was still a lot of work needed to reach agreement with Greece on its debt bailout, as tortuous talks drag on amid fears Athens could run out of money.