Greece Considers Exit From Euro Zone

Countries immersed in debt squirm under the scrutiny of creditors and angry taxpayers. Spiegel Online reports that Greece, seeking relief, is considering abandoning the euro. The Greek government has denied the report. The story by Christian Reiermann reports that any such relief would be short-lived: Capital markets would sever ties. Banks would go insolvent. EU aid to Greece would stop. Investors would lose trust in Europe. Greece would go bankrupt. The European Commission called a crisis meeting to review Greek currency plans and debt restructuring. Any replacement currency would undergo devaluation, writes Reiermann. “Legal experts believe it would also be necessary for the country to split from the European Union entirely in order to abandon the common currency,” he notes. “[I]t is questionable whether other members of the currency union would actually refuse to accept a unilateral exit from the euro zone by the government in Athens.” Greece’s exit would have “disastrous effects” on Europe’s economy, analysts conclude, and even talk is damaging. – YaleGlobal