Posted by Allison on 21 May 2012, 13:36
Never a day goes by when we don’t read about the current state of affairs in Europe. Greece is in more than dire straits, having no solid government to lead it and teetering on the verge of abandoning the Euro. Leaders of other European countries cannot come to a decision on what to do for the best, so their beloved project sinks before their eyes. While the Greek default seems ever more likely with each day that passes, it is uncertain what would happen if Greece did drop out of the Euro. Would they be the first of many countries to do so? It could well be the case.
While we look at our currency widgets to see how well – or badly – the Euro performs, we also have the latest comments from Prime Minister David Cameron to consider. He has made several comments on the situation currently facing Greece, but in the last couple of days he has stated that the Greeks must either accept the agreed austerity programme or leave the single currency altogether. He maintains these are the only two choices available.
In a sense he is right – the austerity measures were agreed previously by the government in talks with those in power in the European Union. But the government was ousted in recent elections and now the idea of the austerity measures is in doubt. So what will happen now in Europe? We can only wait and see, but David Cameron does have a right to voice his opinion on what is occurring. If he stood by and watched he would have no right to make comments on any other European decisions. After all he has taken part in the G8 summit in recent days with other major figures including the US President Barack Obama and various leaders from Europe. Thus he should be expected to have an opinion on the situation in Europe, just as all the other leaders have.
In reality whatever happens in the Eurozone will have an effect on us here in Britain. We may not have their currency but we are a part of Europe and we will be affected by events there, especially if they turn from bad to worse – as is likely to happen. Many have said the Euro cannot go on as it is now; the only question is what will happen first. The PM may be right in that Greece may have only two choices – to accept austerity or to reject the Euro. Certainly at present there seems to be no middle path. The most worrying thing is what will happen after one of the above options takes place. Will it lead to better or worse events taking place in the future?