Is Greece Close to Exiting from the EU?
By Sunburst editor
The happy marriage between EU countries is facing a rough patch that may see it end with certain parties exiting the EU. It is not news that Greece and its creditors – the ECB, the IMF, and the European Commission – have been on a back and forth journey since the first Greek bail out by the EU and the IMF. Things have taken a turn for the worse among these stakeholders as they drift further apart than ever after four hours of closed-door talks. The ties still binding Greece to the currency bloc may begin to unravel with funding keeping Greek banks afloat under scrutiny if a settlement is not reached.
Economic circumstances in Greece have taken a turn for the worse and any fly by night prophet can prophesy that Greece will not meet the terms agreed by the stakeholders or creditors. Over 3 billion Euro left Greece banks as investors fear currency change given the uncertainties. All these are pointing to one direction – Greece maybe on its way out of the Euro Zone.
Meanwhile, thousands of Greeks rallied outside parliament in central Athens to urge the government to reach an agreement with its creditors that will keep the country inside Europe’s monetary union despite the odds.
The question is for how long will Greece continue to be bailed out by its creditors? On the one hand – Greece’s government vows to reject any further bailouts given that the previous ones have crippled the economy. On the other hand, economic circumstances have not allowed the nation to be able to meet up with the requirements of its creditors: the European Union and International Monetary Fund are demanding tighter policy to ensure that repayment continues.
Greece’s financial lifeline will expire at the end of the month when it’s due to repay about $1.7 billion to the IMF. EU leaders, who are due to hold an emergency summit to discuss the crisis on Monday, still say they want a deal to keep the country in the euro. But in recent days they’ve begun to warn that patience with Greek negotiators is running out.
While some analysts say the consequences of leaving the euro would be absolutely catastrophic – others feel that it may be a good thing to do. However, all eyes will be on the emergency EU meeting on Monday on Greece.