>
The country is in a right mess. Plunging IMF and Eurozone funds into the country to help pay it’s debts won’t work a second time round if it didn’t the first time. Their trouble are too deep. So what should they do? Well Boris Johnson had the right idea yesterday, Greece should just default on it’s debts, it will probably cost us less than the bailouts did, and leave the Euro and start again.
If a person were in such a mire, the banks would just declare you insolvent and make you start again. For Greece, and the rest of Europe (including the UK) to have been this reckless with such colossal overspending, you have to wonder how qualified our most ‘qualified’ people were when crafting these plans.
On Tuesday, Greece is due to vote on whether to pass the proposed austerity measures. The likelihood is that they won’t. And if they don’t, they don’t deserve to be bailed out. They should face up to the oncoming situation, default and leave the Euro. That way they can go back to their own currency so that they can be more competitive within Europe. The quicker they do this the less long term harm they will do to the stock and pensions markets by not dragging this out.
>So you're suggesting Greece should do a phoenix effectively? I'm not so sure.
And I'm not convinced that Europe should effectively leave Greece to it. It's a complex web of finances which could trigger more problems. Europe is the UK's largest customer. If Europe sneezes we get a cold as they say.
>RCG – Europe needs to examine how exposed they are to Greek debt. One of today's papers claimed that because of the crisis this country's pensions pot is £100 billion down – and this is before Greece defaults.
I think in any respect, whatever happens Europe is probably going to be badly hit by this crisis. And like you say, when Europe sneezes we get the cold!