bertrand
Regular Member
Finally after months of empty debates about the Greek crisis the real question is on the table: Does Greece still have its place in the Euro-group?
Immediately, this question raises a few others:
- Do the Greeks still want to be part of the Euro?
- Are they willing to make harsh sacrifices to stay in?
- what is really best for Greece and the Greek people?
- What is best for the rest of the Euro group?
My personal opinion is that Greece should leave the Euro, at least for a temporary period (10 to 20 years). Greece is in the same position as Argentina used to be. In such a position there is no other choice but to devalue to give some breathing room to the economy to be competitive again. Being part of the Euro, it can't do that, and as a result the economy is clumbered. Giving all the money in the world to the Greek will not change that simple truth:
ONLY A DEVALUATION OF ITS CURRENCY CAN MAKE THE GREEK ECONOMY COMPETITIVE AGAIN
If Greece were to devalue tomorrow and return to the Drachma, the pressure on the euro would cease, the greek economy would return to its own pace, and the Euro-group could still help them from a much more stable position. In addition, the Greeks would feel again in control of their country and they would be able to do the reforms they wish at their own pace, without being forced to anything by other countries.
Immediately, this question raises a few others:
- Do the Greeks still want to be part of the Euro?
- Are they willing to make harsh sacrifices to stay in?
- what is really best for Greece and the Greek people?
- What is best for the rest of the Euro group?
My personal opinion is that Greece should leave the Euro, at least for a temporary period (10 to 20 years). Greece is in the same position as Argentina used to be. In such a position there is no other choice but to devalue to give some breathing room to the economy to be competitive again. Being part of the Euro, it can't do that, and as a result the economy is clumbered. Giving all the money in the world to the Greek will not change that simple truth:
ONLY A DEVALUATION OF ITS CURRENCY CAN MAKE THE GREEK ECONOMY COMPETITIVE AGAIN
If Greece were to devalue tomorrow and return to the Drachma, the pressure on the euro would cease, the greek economy would return to its own pace, and the Euro-group could still help them from a much more stable position. In addition, the Greeks would feel again in control of their country and they would be able to do the reforms they wish at their own pace, without being forced to anything by other countries.