Greece and the eurozone in the grip of uncertainty

Amanda Paul, Today Zaman, 07.07.2015

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[...] If they cannot find a deal, Greece could be thrown out of the eurozone or worse. As my colleague Janis Emmanouilidis wrote earlier this week in an EPC commentary, “A Greek exit from the common currency would be a financial, economic, social, and potentially also political catastrophe for Greece, aggravated by the chaotic way a new currency would have to be introduced. Greece would be cut off from international financial markets, with disastrous repercussions for Greek banks and companies, while capital flight and emigration would become endemic, and the temptation to maintain public spending through hyper-inflationary monetary expansion would be hard to resist. The political system might well be undermined, with potential dire consequences for the stability and democracy in Greece, which is already under strain… A deal should be made because the alternative is too costly. This requires political leadership, including the maturity to accept that winning at any cost might endanger the very core of European integration.”

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