It’s a Greek tragedy being played out on an international stage. International financial experts have just warned that Europe’s single currency will, as they predict, be “almost certain” to break up in the next five years – directly because of the Greek debt crisis.
Hands Tied for Greece
They predict that Greece will be forced out of the eurozone as early as 2013, and that weaker economies like those in Portugal and Ireland may soon follow suit.
This forecast comes from the Centre for Economics and Business Research, and came just as the European finance ministers have gone back to Luxembourg to figure out how to help the Greek economy.
Threatening Other EU Economies
The Prime Minister of Luxembourg, Jean-Claude Juncker, warned that the Greek crisis is threatening other EU economies, including Portugal, Ireland, Italy, Belgium and Spain.
Experts assume that the additional bailout needed will amount to £100million or so, and that this amount should help Greece to stay on track until 2014. Certainly, no one wants to contribute more than necessary and put his own economy at risk.
As the Chief Secretary to the Treasury in the UK, Danny Alexander, said yesterday:
“There is simply no proposition on the table for the UK to contribute beyond that IMF involvement and I don’t expect there to be one.”
Experts have recently said that the Greek crisis is really a global one, and that the “whole world economy” is threatened. They also said that Greece would default on its loans, and that it was just a question of when and not if that would happen.
