Posted by Allison on 28 April 2015, 12:43
Greece has had its fair share of problems – some would say even more than that – since becoming part of the Eurozone. The most recent news reports have stated the euro is struggling against other currencies as a consequence of the worry over whether Greece will leave the Eurozone or not. The uncertainty definitely doesn’t do anything good for Europe as a whole, much less those living in Greece.
It looks as though Greece’s relatively new government is holding fast on the issue of repaying its debt. The new government doesn’t want austerity and yet that’s exactly what is on the table for the country if it is to repay its debts. Some experts have noted that the country had to fudge its financial figures in order to be accepted into the zone to begin with. Now the consequences are becoming clear – and many have said it would be better for all concerned if Greece did ditch the single currency to go it alone.
The big question is not so much whether this would happen – it’s what the overall result would be if it did. Some say Greece would be a lot better off, and if this was the case would it lead to other countries leaving the Eurozone as well? It’s all quite intriguing and well worth considering in more detail. The idea that a country – a whole country – could actually run dry of cash is one that is hard to get your head around. However it is worth doing so because this might actually happen if Greece defaults on that debt in the near future.
And this could happen too. We’re not talking about a few euros here – we’re talking in the many millions. It is a figure few would be able to get their heads around, and yet if the country does default there is a real chance the real victims will be the Greeks themselves.
It seems as if more and more people are starting to realise that going back to the drachma could be the best solution out of a number of troublesome options. Indeed, in the end, the drachma could save the country from going through even tougher times than it already has.
In a way the biggest question could be whether Greece decides to leave the euro and the Eurozone behind, or whether the Eurozone could muster up the courage to eject the country. For the latter to occur those in charge must admit their plan has failed, at least in some respect. Furthermore, it should be questioned whether this will lead to other countries considering the idea of leaving in the future. It could leave the Eurozone on potentially shaky ground as a result.