Opinion: Why a Grexit Must Be Avoided

[unhappycamper]

http://www.spiegel.de/international/europe/grexit-would-have-disastrous-and-far-reaching-consequences-a-1043159.html



Europe is preparing for a Grexit and German voters would like to see the country leave the common currency regime. That, though, would be the wrong move. A Grexit must be avoided at all costs.

Opinion: Why a Grexit Must Be Avoided
A Commentary by Mathieu von Rohr
July 10, 2015 – 06:10 PM

Anyone who opposes the prospect of a Grexit can feel a little lonely in Germany these days. Indignation over the Greek government is widespread and the seemingly endless rounds of debt talks have left the public drained. A Grexit seems to promise release and is looking increasingly appealing to many.

~snip~

A Grexit would mark the end to the process of European integration; the euro would be destabilized as a currency; the EU would be geopolitically undermined.

After five years of Greece topping Europe's agenda, its exit from the euro zone would amount to a monumental failure for the bloc's leaders. Greece would be condemned to hardship and cast adrift from Europe.

The euro zone might be more robust now than it was five years ago, and the fallout from a Grexit might prove less severe than predicted in 2010. But at this point, no one yet knows what exactly the consequences would be, as there is no precedent. Whether it proceeded in an orderly or a disorderly way, a Grexit would be a dramatic event. And, indeed, an expensive one, costing Germany up to €60 billion. An additional humanitarian aid effort worth billions would be required, as would debt relief.

[PoliticAverse]

1. The "monumental failure" was letting a country lie their way into the Euro

and then when that was fully realized not making them take an orderly planned exit.

How many years is the rest of Europe planning to run the Greek economy?

What happens when the new planned round of austerity fails?