Will Greece Withdraw From The Euro Zone?

The United States has seen a great deal since the end of 2009. debt Since the crisis, the credit of Greece has declined and the risk of default has risen. financing Difficulties arise. But in reply, "will Greece withdraw?" Euro When answering this question, we must first answer these questions.

Is Greece willing to "retreat from Europe"? Surely not. According to a document from the German Ministry of finance, if Greece "returns to Europe" and uses its own currency, the Greek dollar will depreciate significantly to the euro rate, even to 50%, while Greek bonds will also increase sharply. Together with two factors, the national debt will reach 200% of GNP.

Do other euro zone members want Greece to "retreat from Europe"? Can't. This is mainly a look at the locomotive of the EU economy - the attitude of Germany. Greece joins the euro and opens the market. Germany is the main beneficiary. If Greece goes back to Europe, not only will the Greek central bank buy up not less than 40 billion euros of Greek bonds, but the euro Union member's Joint International Monetary Fund, which provides 110 billion euros for Greece, especially half of the debt that has already arrived, will all be transferred to the members of the euro member countries. Among them, Germany is the largest.

If Greece goes back to Europe, will the euro become stronger? Can't. Greece's gross domestic product accounts for only a fraction of the total value of the European Union (18 trillion and 400 billion). The ten thousand step is to say that if Greece returns to Europe, it will ease the bad financial situation in the euro area, but it will be a drop in the bucket. Greece, plus Spain, Portugal and Ireland, has a total economic value of about 1/5 of the total value of the EU. If they all "retreat from Europe", as a currency, the market performance of the euro may be better than it is now. However, the credibility of the euro will be severely compromised, and the EU's process will suffer an important setback.