Greece faces "the spectre of bankruptcy" (again)

EarthRod

The Euro is a single currency shared by countries of the EU. In addition, a few overseas territories of EU countries also use the Euro as their currency. The European Central Bank has to approve and permit the use of the Euro as a national currency.

As JagoUK says, the Euro can also be used as exchange and trading money in countries with a weak currency (same as the US dollar is used), but of course that is not the same thing as a national currency.

Member 55145

I'd like to see the EU stop them

What they gonna do? go to war with a fellow European country? a couple of World Wars started that way

mitchec1

We were in Corfu in May and the locals we know expected a Greek default.

Going back out in October and the hotel we're staying at wants payment in Sterling.

Enki

Who do have in mind for the abyss, I'm assuming you may think Putin will try and expand further, the EU has not been successful thus far, in dampening the enthusiasm, for his Greater Russia. The gas pipeline deal between Russia and Greece was clever!  Also says a lot about EU stance against Russia/Ukraine or maybe the free market principle was just to strong.

EarthRod

Greece has closed the banks and the stock market until 7 July (after the referendum) and looks to be heading towards defaulting on its payment to the IMF.

It seem the situation is about to hit the mud and poor old debt-strapped Greece is facing financial collapse.

... Is there any chance of some kind of fiscal rescue?

johntheexpat

Depends what you mean by "rescue", I suppose.  I would guess there is no chance of Greece accepting any of the terms and conditions that would force the country into deep austerity and depression for maybe the next decade or more.  Who in their right minds would do that?  Surely its better from the average Greeks viewpoint to take the hit, hit the bottom and then at least have some reason for hope of things getting better.  To bite the bullet, accept the medicine and take the money, the Greeks would condemn themselves to years of no hope of anything.  It's not really an option, is it?

But if you mean "rescue" as in ensuring that Greece can still function at some level, the hospitals work and the teachers teach, then I would say almost certainly.  Europe isn't going to cast Greece aside and stand idly by while the population start dying through lack of medicine and the next generation is lost because of lack of education.  That would be unacceptable to everyone who believes in European unity.

If the European politicians do pull the plug on Greece and then don't ensure that the country can still function, that will destroy Europe as a concept faster than any financial market shenanigans.

Sonic67

The interesting thing is if Greece goes how it will affect Brexit. To lose one country would be a misfortune, to lose another??? Pretty sure the EU would be far more accommodating on reform to keep us in.

Sonic67

Reminds me of Bosnia, the locals would accept any decent currency. You want to buy something, you say what currency you have, at the time I had dollars, Marks and Sterling and they would get out a calculator and work out a price and after a bit of haggling money would then change hands.

Sve

I think this is the house of cards syndrome now.

Enki

As it has not happened before, who knows the wider ramifications; putting aside the dramatics of la gran siete in post 127, he does have a point.