Why Is GREXIT A Solution?
Is GREXIT A Solution?
Vasudaiva Kutumbakam- the entire world is one family. But sometimes to this family disruptions are caused. What is important here is to stand strong and united against all the adversities just like the financial crisis of 2008 played a significant role in disrupting this single large family as it caused failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis, but still the world remained firm and united and overcame this worst financial crisis. A similar situation is occurring in recent times in European Union – Greece Crisis or commonly …show more content…
The problems posed by Greece's debt-laden economy, and the risk of it having to leave the 19-member eurozone via a so-called a "Grexit," have weighed on many European Union (EU) summit meetings. That risk has grown substantially since January, when Greek voters handed power to the radical left party Syriza which fiercely opposes the terms of previous international bailouts.
Greece's financial crisis has grown steadily, with public debt climbing from 107 percent of national output in 2007 to 177 percent last year, according to the EU statistics office Eurostat. That is far above the theoretical EU limit of 60 percent. According to the Greek debt management agency, in March national debt stood at 312.7 billion euros, or 174.7 percent of gross domestic product (GDP). In monetary terms, Greece's 2014 debts of 317 billion euros was also deemed unsustainable by the International Monetary Fund (IMF), one of the country's main …show more content…
A new drachma would be worth much less than a euro -- some analysts expect a devaluation of 50% -- meaning the cost of imports would rocket, sending inflation soaring.
The social catastrophe could be much worse than that seen in the early years of Greece's bailout programs.
d) The risk of losing Greece to Russia
Greece has been a member of NATO since 1952, but also has commercial, cultural and religious ties with Russia.
Since his election in January, the left-wing government of Prime Minister Alexis Tsipras has sought to develop that relationship, visiting President Vladimir Putin and signing a deal to open a Russian gas pipeline across Greece next year.
America and Europe are still trying to exert pressure on Putin over the Ukraine crisis, and won't welcome warmer ties between Moscow and Athens.Former U.S. national security adviser Zbigniew Brzezinski warned earlier this year that Greece could slow NATO's ability to respond to Russian aggression.
So, What’s the road ahead???
Negative scenarios - mapping the
Vasudaiva Kutumbakam- the entire world is one family. But sometimes to this family disruptions are caused. What is important here is to stand strong and united against all the adversities just like the financial crisis of 2008 played a significant role in disrupting this single large family as it caused failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis, but still the world remained firm and united and overcame this worst financial crisis. A similar situation is occurring in recent times in European Union – Greece Crisis or commonly …show more content…
The problems posed by Greece's debt-laden economy, and the risk of it having to leave the 19-member eurozone via a so-called a "Grexit," have weighed on many European Union (EU) summit meetings. That risk has grown substantially since January, when Greek voters handed power to the radical left party Syriza which fiercely opposes the terms of previous international bailouts.
Greece's financial crisis has grown steadily, with public debt climbing from 107 percent of national output in 2007 to 177 percent last year, according to the EU statistics office Eurostat. That is far above the theoretical EU limit of 60 percent. According to the Greek debt management agency, in March national debt stood at 312.7 billion euros, or 174.7 percent of gross domestic product (GDP). In monetary terms, Greece's 2014 debts of 317 billion euros was also deemed unsustainable by the International Monetary Fund (IMF), one of the country's main …show more content…
A new drachma would be worth much less than a euro -- some analysts expect a devaluation of 50% -- meaning the cost of imports would rocket, sending inflation soaring.
The social catastrophe could be much worse than that seen in the early years of Greece's bailout programs.
d) The risk of losing Greece to Russia
Greece has been a member of NATO since 1952, but also has commercial, cultural and religious ties with Russia.
Since his election in January, the left-wing government of Prime Minister Alexis Tsipras has sought to develop that relationship, visiting President Vladimir Putin and signing a deal to open a Russian gas pipeline across Greece next year.
America and Europe are still trying to exert pressure on Putin over the Ukraine crisis, and won't welcome warmer ties between Moscow and Athens.Former U.S. national security adviser Zbigniew Brzezinski warned earlier this year that Greece could slow NATO's ability to respond to Russian aggression.
So, What’s the road ahead???
Negative scenarios - mapping the