Almost half of investors in a German survey said they believe Greece will be forced out of the Eurozone within a year.
The poll by the research group Sentix showed some 48.3 percent of the investors thought the debt crisis was too much for Greece to overcome as the country was locked in talks with international lenders.
That was a big jump from the 35.5 percent who felt that way in March, a month after Greece got a four-month bailout extension from the troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) and has failed since to come up with an acceptable list of reforms needed to unblock more aid.
“European politicians’ promises to pursue the scenario of Greece keeping the euro are not taken at face value by about half of all investors,” Sentix said in a statement.
Greece is running out of cash fast, is locked out of markets and seeing nervous depositors yanking billions of euros out of the country’s bank, raising the jitter level.
“In 2012 (European Central Bank President) Mario Draghi calmed down investors with his ultimate commitment to the euro. But is his pledge still valid for Greece today?” Sentix said.
The breakup index for the Eurozone as a whole climbed to 49.0 percent in April from 36.8 percent in March, driven by the increase in expectations that Greece would default of what’s left of what it owes the troika, which has put up 240 billion euros ($260 billion) in two bailouts since 2010.
Even worse for Greece was that Sentix found there were lesser fears that a Greek exit would affect the Eurozone as new safeguards have been put in place over the last couple of years. Only 26.1 percent said there could be a contagion.
The breakup survey covered 1,023 investors conducted April 23-25. It measures the percentage of investors that expect the Eurozone to break up.