http://www.bbc.com/news/business-31249907
The article discusses the views of former Federal Reserve Chariman Alan Greenspan that Greece will not be able to remain a part of the Eurozone for long. He does not think it likely that Greece will be able to renegotiate its bailout successfully, especially with the views of the new government. He echoes the sentiment that there are many structural problems with the current arrangement of the Eurozone's monetary union and that nothing short of full political integration will make the region successful.
This, however, is very unlikely to happen given the views of the member nations. In addition, it does not appear that the ECB is willing to renegotiate the terms of the bailout that was provided to Greece. The article does suggest that the fallout of Greece leaving the Eurozone would be more manageable now than it was in 2010. The newly elected government in Greece insists that it will be sticking to its promises and has stated that they will seek a loan from the ECB and not a bailout. It remains to be seen if the ECB is willing to cooperate on this.
The article discusses the views of former Federal Reserve Chariman Alan Greenspan that Greece will not be able to remain a part of the Eurozone for long. He does not think it likely that Greece will be able to renegotiate its bailout successfully, especially with the views of the new government. He echoes the sentiment that there are many structural problems with the current arrangement of the Eurozone's monetary union and that nothing short of full political integration will make the region successful.
This, however, is very unlikely to happen given the views of the member nations. In addition, it does not appear that the ECB is willing to renegotiate the terms of the bailout that was provided to Greece. The article does suggest that the fallout of Greece leaving the Eurozone would be more manageable now than it was in 2010. The newly elected government in Greece insists that it will be sticking to its promises and has stated that they will seek a loan from the ECB and not a bailout. It remains to be seen if the ECB is willing to cooperate on this.
1 comment:
Greece has caused great stress on the financial situation for the European Union. With Germany carrying numerous nations through a recession, it seems Greece has worn out its support and at some point will be beyond saving. It will be interesting to see if Greece will be able to renegotiate a bailout or loan or if they will be booted from EU.
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