Greece not in euro zone

Archibald

Banned
19 June 2000 Greece is admitted to the euro zone. The irrevocable conversion rate between the euro and the Greek drachma will be GDR 340.750 per 1 EUR.
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So, whatif Greece never entered the eurozone ?

http://en.wikipedia.org/wiki/Economy_of_Greece
http://en.wikipedia.org/wiki/Greek_Financial_Audit,_2004
The Greek economy was one of the fastest growing in the eurozone from 2000 to 2007; during that period, it grew at an annual rate of 4.2% as foreign capital flooded the country.[9] A strong economy and falling bond yields allowed the government of Greece to run large structural deficits. According to an editorial published by the Greek right-wing newspaper Kathimerini, large public deficits are one of the features that have marked the Greek social model since the restoration of democracy in 1974. After the removal of the right-wing military junta, the government wanted to bring disenfranchised left-leaning portions of the population into the economic mainstream.http://en.wikipedia.org/wiki/2010_European_sovereign_debt_crisis#cite_note-9
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During the 80s, despite membership in the EC, Greece suffered from poor macroeconomic performance due to expansionary fiscal policies that led to a tripling of the debt-to-GDP ratio, which went from the modest figure of 34.5% in 1981 to the triple digits by the 90s.[17] The second oil shock after the Iranian Revolution hurt Greece, and the 80s were racked by high inflation as politicians pursued populist policies. The average rate of inflation in Greece during the 80s was 19%, which was three times the EU average. The Greek budget deficit also rose very substantially during the 80s, peaking at 9% in 1985.[17] In the late 80s Greece implemented stabilization programs, cutting inflation from 25% in 1985 to 16% in 1987. The debt accumulated in the 80s was a large problem for the Greek government, and by 1991 interest payments on the public debt reached almost 12% of GDP.[17] When the Maastricht Treaty was signed in 1991, Greece was very far from meeting the convergence criteria. For example, the inflation rate of Greece was 19.8%, while the EU average was 4.07% and the government's deficit was 11.5% of GDP, while the EU average was 3.64%. Nonetheless, Greece was able to dramatically improve its finances during the 1990s, with both inflation and budget deficit falling below 3% by 1999. Thus, it met the criteria for entry into Eurozone (including the budget deficit criterion even after its recent revision calculated with the method in force at the time). The Greek economy also exhibited strong growth throughout the 90s, which has continued into the new millennium.
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However, the Greek economy also faces significant problems, including rapidly rising unemployment levels, an inefficient public sector bureaucracy, tax evasion, corruption and low global competitiveness.[26][27] Greece has the EU's lowest Corruption Perceptions Index, Index of Economic Freedom and Global Competitiveness Index, ranking 78th, 88th and 90th in the world respectively.[28][29][30] Corruption, together with the associated issue of poor standards of tax collection, is widely regarded as both a key cause of the current troubles in the economy and a key hurdle in terms of overcoming the country's debt problem.
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Arachnid

You need to change the political dynamics. Despite all the BS about it being an "economic" decision the Euro was always a political construct. That means everyone involved has a strong motivation to get Greece in by letting it fudge the figures and look the other way.
 

EternalCynic

Aracnid said:
You need to change the political dynamics. Despite all the BS about it being an "economic" decision the Euro was always a political construct. That means everyone involved has a strong motivation to get Greece in by letting it fudge the figures and look the other way.
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If Greece isn't allowed into the Eurozone, it will presumably be because Brussels is taking less of a political view. If that's the case then not only will Italy, Spain, Ireland, and Portugal be refused entry into the Eurozone, it's iffy whether France is allowed in as well. If the Eurozone only includes Germany, Austria, and Benelux, the Euro project will be too nakedly revealed as a reincarnation of the Greater German Reich. :rolleyes:
 

John Farson

EternalCynic said:
If Greece isn't allowed into the Eurozone, it will presumably be because Brussels is taking less of a political view. If that's the case then not only will Italy, Spain, Ireland, and Portugal be refused entry into the Eurozone, it's iffy whether France is allowed in as well. If the Eurozone only includes Germany, Austria, and Benelux, the Euro project will be too nakedly revealed as a reincarnation of the Greater German Reich. :rolleyes:
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Ein Volk, Ein Reich, Ein Euro!!!
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