Greece and the euro

Osmi Anannya

Image © Yiannis Baboulias

Greece has been entangled with large-scale debt, for many months now. Off late, prominent voices in the European Union have stated that it’s looking increasingly likely that Greece will leave the Euro zone. Some have added that it’s probably in the best interest of the country to in fact do so. This is because all those in favour of the exit believe there is a possibility Greece could reach a time when long-term of interdependency on foreign nations and banks is widely active; significant shares of the nation’s finances and economy are already under the reign of the International Monetary Fund (IMF), European Commission, and the European Central Bank [3].

If Greece does choose to exit the Euro zone, it could then start the journey of recovery by having its own currency, the drachma, once more. The currency could then be devalued to make way for cheap exports and high rates favouring imports [1]. It is quite difficult to grasp, however, how expensive imports are going to be beneficial for the country, because an increase in the rate of import stands to most likely increase the prices of goods, merchandise or commodities available in the country.

In an economic crisis it would be an unwelcome request to ask people in Greece to spend more on their daily purchases. Widespread problems in the Greek political system have already left the nation’s people frustrated about daily life, about the lack of jobs available tailored to their skills, about the inefficiency of many public services, for months on end now. This has given rise to a growing lack of faith in the government, cumulating to the recent riots and revolts and protests in Greece, one after another in a locomotive fashion.

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