Greece may have to leave eurozone

A European economist, Ben May, says the recession-hit Greece may be forced to leave the eurozone if the countryâ„¢s international creditors cannot reduce Athensâ„¢ debts.

“If Eurozone creditors behave unwilling in decreasing Greece’s debt burden, it might lead to the country’s collapse and quit from Euro zone,” said the economist at the London-based finance institution Capital Economics on Saturday.

Greece has been at the epicenter of the eurozone debt crisis and is experiencing its sixth year of recession, while harsh austerity measures have left about half a million people without jobs.

On July 8, Eurozone finance ministers decided to agree on the recommendations by the so-called troika of international lenders — the European Union (EU), the European Central Bank (ECB), and the International Monetary Fund (IMF) — to release nearly 7 billion euros (USD 9.2 billion) in financial aid for Greece.

This is while, in order to receive the approved rescue funds, Greece must stick to the agenda of either transferring or laying off thousands of civil servants, including Athens municipal police, teachers and school security personnel, by the end of this year.

Athens was granted a 110-billion-euro (USD 145-billion) bailout by the so-called troika in May 2010.

Another 130-billion euro (USD 170-billion) rescue package was approved in February 2012.

The record high unemployment level in Greece stands at 27 percent and 62.5 percent of the youths are without work.

One out of every five Greek workers is currently unemployed; banks are in a shaky position, and pensions and salaries have been slashed by up to 40 percent.


Republished with permission from: Press TV