Should Greece be out of Euro Zone?
Yes, I believe that Greece will have to leave the Eurozone. The case of Greece is an extreme one where all the involved parties are at stake and in a possibility of danger, in one way or the other. The country as a whole is on the verge of bankruptcy. The deeply rooted systems of Greece have caused a state of urgency for not just Greece alone, but also the other members of the Eurozone. Since the presence of Greece in the Eurozone poses a threat for the entire Zone in terms of interest rate fluctuations and the complications for debts in the future, I believe that the best decision would be Greece leaving the Eurozone.
The implications for Greece in leaving the Eurozone seem to be favorable, even after the exit. Greece needs to print more currency because the budget is in deficit. The number of austerity packages released by the Government has led the economy to shrink in a number of ways. The first austerity package was passed by the Greek Government in 2010. It included the measures such as freezing the Government employee salaries, huge cuts in bonuses and overtime workers’ time. This resulted in the credit rating cuts. The first amount of bailout was $143 billion and over a period of three years.
There were about six austerity packages released by the Company as a whole. The referendum has decided that there should not be additional debts for the economy. The referendum done by the new Prime Minister Alexis Tsipras has clearly given the holistic thinking of the Greek economy. Depending on the overall situation of the common sentiment as well as the currency need of the economy, I think the best option for Greece as well as other economies in the Eurozone would be exiting the Eurozone.
References
Times, T. (2015). Greece’s Debt Crisis Explained. [online] Nytimes.com. Available at: http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0 [Accessed 23 Jul. 2015].
