Greek Bailout Referrendum

[MacLeod]

Well it looks like the Greek people are going to vote against the bailout terms, so do we think that this will lead to a Grexit from the eurozone and a return to the drachma?

Is the gulf between the two sides simply too great to overcome? Even if the troika were to forgive some or all of the Greek debt, Greece would still need loans in order to pay it's bills and no doubt due to in essence a default due to the debt being forgiven rather than being paid what sort of interest rate would be apllied and would that just push the issue into the future? And what of the other so called members of the PIGS nations (Portugal, Italy, Greece and Spain) would a Grexit influence their decisions?

And of course the next "crisis" is the UK referredum on membership in the EU due in 2017, and the recent rise in more eurosceptic parties in EU nations reveal an underlying issue with the EU as a whole?

My take is that the EU hasn't done a very good job of engaging with the EU electorate as to it's benefits but that doesn't mean I don't think it needs reform, but as with any sort of reform what I want as a Brit might differ from a German.

 

[Botany Bay]

It's sure looking like they're on the way out. I'd say it's more likely than not.

Nervously awaiting trading in Europe and the USA today to see whether the big boys think there will be any contagion.

 

[MacLeod]

Well the Greek finance minister has resigned.

 

[Starkers]

I think he might have resigned somewhat under duress from what I can tell!

 

[MacLeod]

I gathered that as well, and that the other eurozone finace ministers seemingly no longer wanted to deal with him.

 

[fonzob1]

If Greece exits the EU, Russia will probably step up it's influence there and will have access to Greece's ports. I wonder what other EU leaders will think about that.

 

[MacLeod]

Why would Greece have to exit the EU?

 

[Starkers]

Also I'm not sure Russia would do that, Greece and Russia already have a lot of economic ties, and the Russian economy isn't in good enough shape to pump billions into the Greek economy. They'll likely draw a little closer, but Greece isn't about to become some satellite of the Russian Federation.

 

[fonzob1]

Why would Greece have to exit the EU?

I am referring to participation with the EU by using its currency. Are they still part of the EU if they no longer use the Euro? Either way, my point was that Greek's financial difficulties creating distance from the EU may equate to stronger ties with Russia.

 

[MacLeod]

The EU consists of 28 members of which only 19 have adopted the the common currency(euro) this area is known as the eurozone or euro area.

 

[Starkers]

Take the UK as a classic example!

I'm not sure what the Greeks have gained by having the referendum (aside from spending more money) as it looks like what they're suggesting might be worse than what they were offered before the referendum!