This probably is a situation which will be a loss in either case: if Greece exits, it could be a bigger issue for Eurozone and Greece will have to fight its own battles with no common currency nation by its side.
All posts tagged Eurozone
BRICS NEW DEVELOPMENT BANK – Does it have what it takes?
The whole purpose of BRICS New Development Bank is to be self sufficient and rely less on western economies. The world’s reserves has shrunk from 90% (2004) of dollar denominated securities to 60% in 2014. But, the growing tension individually in the member countries could easily defeat the purpose for which it was originally formed. Some debate that this small initiative (formation of BRICS) could be a big challenge for the advanced economies.
Eurozone Crisis Explained
The Eurozone comprises of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Established in 1999, these countries have adopted a common currency called the ‘Euro’. ‘Euro’ itself was introduced as a single currency no later than 2002. By sharing a common currency, the countries follow common economic and fiscal policies. Monetary policy decisions are taken by the independent European Central Bank , also known as the ECB. Entry to join the eurozone is controlled by the so-called Eurogroup.
5 Startling Developments in Greece
Greece’s bailout extension expires in May this year and its inclination towards the members of BRICS seems inevitable. For long, Greece’s economy has been bringing troubling news to the Eurozone. The EU members have time and again tried their best to keep Greece in the common currency zone but bailouts and downgrading has got the worse out of Greece. However, the debt crisis in Greece seems to only deepen and has taken a different turn with some new developments in the Greece’s strategy – mostly captured in the statements of Greek Defense minister, Panos Kammenos.