Financial Times
Why Greece will have to leave the eurozone
By Desmond Lachman
Published: January 11 2010 20:03
"This experience informs me that, much lik......e Argentina a decade ago, Greece is approaching the final stages of its currency arrangement. There is every prospect that within two to three years, after much official money is thrown its way, Greece’s euro membership will end with a bang."
"The next stage on the road to ruin occurs when the country pursues domestic policies that are inconsistent with its new currency arrangement. In recent years Athens has thrown any notion of budget discipline to the wind. Euro membership supposedly obliges a country to abide by the Maastricht criteria of keeping its budget deficit below 3 per cent of gross domestic product and its public debt-to-GDP ratio below 60 per cent. Greece’s budget deficit has widened to 12.7 per cent of GDP, while its debt-to-GDP ratio is projected to reach 120 per cent in 2010."
Its not looking too good for our neighbours, monetary wise. Is the next step to take the "Argentinian way", and what consequences will that have? Greece Euro membership and lies will end with a bang. I like the sound of that.
Why Greece will have to leave the eurozone
By Desmond Lachman
Published: January 11 2010 20:03
"This experience informs me that, much lik......e Argentina a decade ago, Greece is approaching the final stages of its currency arrangement. There is every prospect that within two to three years, after much official money is thrown its way, Greece’s euro membership will end with a bang."
"The next stage on the road to ruin occurs when the country pursues domestic policies that are inconsistent with its new currency arrangement. In recent years Athens has thrown any notion of budget discipline to the wind. Euro membership supposedly obliges a country to abide by the Maastricht criteria of keeping its budget deficit below 3 per cent of gross domestic product and its public debt-to-GDP ratio below 60 per cent. Greece’s budget deficit has widened to 12.7 per cent of GDP, while its debt-to-GDP ratio is projected to reach 120 per cent in 2010."
Its not looking too good for our neighbours, monetary wise. Is the next step to take the "Argentinian way", and what consequences will that have? Greece Euro membership and lies will end with a bang. I like the sound of that.
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