A report by Al Jazeera’s business editor Abid Ali was posted today at the international news agency’s online edition explaining why Greece will inevitably exit the Euro Zone.
Despite the election results that could bring a new government in power to Greece, the GRexit will most certainly follow because the austerity measures imposed by the Troika are breaking the back of the Greek economy.
The report underscores that there are voices asking for Greece’s staying in the Euro, others asking for its exit, while some call for a new haircut on Greece’s debt to avoid contamination and collapse of the Euro Zone.
According to the Swiss investment bank UBS, should Greece exit the common currency, then the European taxpayers would have to take over its debt of between 225 billion to 800 billion euros.
“German Chancellor Angela Merkel won’t countenance demands to renegotiate the bailout. It’s a vote loser, and other bailout nations will demand the same. Although there are signals coming out of Berlin that there could be some easing of terms,” reads the report.
The public cash reserves of Greece will reportedly be out of money by next month. “And then the losers will be Greek pensioners, civil servants and those on welfare – the most needy in society. And tax payers, who have seen taxes rise to excruciating levels,” adds the Al Jazeera journalist.
“The Royal Bank of Scotland believes there is a 90 per cent chance of Greece leaving the euro in the next 12-18 months, while Citigroup says there is a 50-75 per cent chance.”
The report concludes that the future of the European monetary union “will be decided in Spain and Italy” rather than in Greece.
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