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Is there catharsis at the end of the Greek drama?

An extensive article on the state of the Greek economy, focusing on the new thriller for the return of the troika in Athens and the possibility of early elections that seem to scare the markets, is featured in Die Welt newspaper.

"One of the achievements of Greek tragedy is that after everything that happens the heroes go through catharsis and the audience leaves relieved," says the columnist.

"This is how the present situation of the Greek economy is: for the first time in six years the country has left behind the recession," writes Die Welt, referring to the higher growth rates in the third quarter and the slight drop in unemployment.

It does note, however, that it is still uncertain if the Greek drama will indeed end so. "The economic recovery remains weak and the political situation uncertain. This is due to the fact that Greece continues to depend on international lenders. Moreover it so far remains unclear if the metropolis of the eurokrisis will manage to agree on the date of 8 December for a meeting with its creditors. The drama is not over for financial markets either. The Greek bond rates have soared to exorbitant heights," the article states.

Die Welt notes that Greece has at its disposal 11 billion euros earmarked for the recapitalization of banks, however, to be able to close these gaps through fiscal year 2015, there should be an agreement with the troika.

"As yet there is no agreement. As a key point of disagreement with the troika, the newspaper presents different estimates for the fiscal gap "which lenders calculate at 2.5 and 3.6 billion euros if Greece does not change its fiscal policy." However the government is extremely weak for further cuts or higher taxes, argues Die Welt, noting that Finance Minister Gikas Hardouvelis refers to less than 1 billion euros.

"Athens is struggling for a package solution that includes impairment of debt. Such relief would reduce the deficit for the years ahead," states the article.

As noted by Die Welt, time is running out for the government and because of the upcoming presidential elections in Greece that might therefore lead to early parliamentary elections and the victory of SYRIZA, which could "cancel agreements with the troika and cause a new economic crisis. "

"Early elections could bring panic to the markets," says newspaper economist at UBS Reinhardt Klause. Analyst at Nomura Dimitris Dimitrakopoulos, moves along the same path: “The presidential elections next February will be a milestone for the country and financial markets. In the coming weeks, investors will be watching all developments very closely."

The newspaper concludes that "without outside help investors can write off the country." With debt amounting to 174% of GDP, Greece remains the most indebted Eurozone economy. Even the sudden rise in growth during the third quarter of the year no longer seems so convincing, according to Die Welt, if one considers the levels from which Greece has been at. Moreover, the country has lost 30% of its economic power during the last six years of the crisis.

"At current growth rates it will take more than a decade until Greece can cover that lost ground," said Christian Schulz of Berenberg Bank. "If economists are vindicated and if the political situation is not stabilized soon, then instead of the intended catharsis the country will only take a small break in the endless drama of debt."