Greece Should Ideally Move Out of the Euro Zone to Restore Economic Progress
Published By : 09 Feb 2015 | Published By : QYRESEARCH
According to Alan Greenspan, former head of the central bank, U.S., Greece may not be a part of the Euro zone after a point of time, since the struggling economy of Greece is unable to catch up despite the constant inflow of loans into the economy of Greece. Greece plans on re-negotiating its bailout. However, Greenspan clearly expressed that the problem may not come to an end if Greece doesn’t move out of the Euro zone.
Previously, the chancellor of U.K. had expressed that Greece exiting the euro zone would mean “deep ructions” for the U.K. economy. Furthermore, it has been concluded that the main resolving factor for Greece at present would be political integration, and not just fiscal integration. The European central bank and Berlin are quite hesitant to bring about any changes in the 182 billion pounds worth rescue package offered by the International Monetary Fund, the ECB, and the European Union. The Finance Minister of Germany also stated that the bailout terms for Greece had been more than generous, and he is against the relaxation of these bailout terms any further.
Alan Greenspan further commented that a strong political union - something like a U.S for Europe is the primary requirement for saving the euro. The collateral damage likely to be caused if Greece quits the Euro zone would be instability in the financial markets of Europe, which will gradually increase the risks facing Britain’s economy.
Alexis Tsipras, the prime minister of Greece has plans of resorting to a short term financial plan that would enable Greece to gradually pave its way, and at the same time re-negotiate the austerity measures that were included in the bailout conditions.