Three Perilous Options for Greece Facing Europe

The Greek debt crisis may well destroy the European single currency, argues Financial Times columnist Gideon Rachman: Greece’s debts are immense, and no logical plan is in place for repayment or rapid reforms. If Greece remains in the EU, the nation would be a weak and struggling partner. More EU concessions for Greece would undermine governments in Ireland and Portugal that have endured austerity measures and encourage leftist parties around the continent to balk at paying loans. Taxpayers in Germany and France could expect not to see repayment. If Greece were to abandon the euro, financial markets could raise interest rates and apply pressure on Italy and Spain. Greece might then disrupt EU policies on immigration and Russian sanctions until it formally severed EU ties. Rachman concludes that each of the three paths divides the union, introducing political and economic chaos rather than the prosperity and cooperation long associated with EU expansion. – YaleGlobal