Will Greece restart the Eurozone debt crisis?

[Pharaoh]

I'm beginning to think that governments should be subjected to the same audits that major stock exchanges require from corporations.

Oh wait, sorry. That's a bad idea. The world's economy would implode the same day the audits are released.

 

[Michel123]

Now if only I can get my bucketshop to carry the CNY before they make more moves to liberalize the trading range and then finally let it float freely.

Of course, China providing financial assistance to the Euro in the same way Chinese purchases of US Treasury bonds props up the dollar leads to an interesting scenario. What happens when China decides to collect on all that debt?

I can see 2 ways for Greece to leave:

1. They finally decide they don't want to put up with the strings attached to all the loans and other fiscal assistance.
2. The members of the Eurozone realize it's time to throw them overboard to help keep the ship from sinking.

But it is difficult to exclude Greece from EU and Eurozone from the bureaucratic point of view. Recalculating the depth and resigning all the agreements will actually more time and money consuming than supporting Greece until it is out of crisis

 

[Pharaoh]

If it was just Greece and a one time problem, I'd agree that bailing them out would be simpler and cheaper than tossing them overboard.

Instead, Greece is just the worst off of the countries violating all the rules to be part of the Eurozone. If it's impossible to get tossed out, why bother to follow the rules. Sooner or later, you can just cancel 50% of your bond debt (like Greece) or resorting to legalized bank robbery (like Cyprus), all while begging other EZ members for more money to reorganize debts (Greece, Cyprus, Spain, etc., etc.).

Imagine if a partner in a business enterprise acted this way. That person would be fired and would face lawsuits. Criminal charged might even result.

The Eurozone needs to set clear standards and set up a formal procedure to remove countries that refuse to follow the rules. Otherwise, the Euro will end up failing sooner or later.

 

[Michel123]

I agree that there supposed to be the clear and common standards for all the EZ members, and there supposed to be a procedure to exclude the country if it doesn't fit the requirements anymore. But if there would be ones, how do you imagine Greece, surrounded with the EU countries and not being in the EU? Also, if we talk about currency, before Greece would be able to set-up its own currency system Euro will still be under the Greek influence. So it is easier to manage the Greek problem inside the EU


One more thing that worries me as well is the Croatia acceptance to the EU. I don't think, that it is easy for any economy to be reconstructed and it might become one additional rock for Germany's shoulders.