Spanish Property Insight › Forums › Spanish Property Forums › Real Estate Topics, News & Discussion › Euro – One in seven chance it will be abandoned › Re: Re: Euro – One in seven chance it will be abandoned
Give some thought for one moment of the possible consequences of Greece leaving the Eurozone.
It would mean as a start default on it’s debt because the Drachma would be hopelessly devalued against the Euro. Their debts would stay in Euros. After restructuring these debts would need to be serviced in Euros at a hopelessly unsustainable rate.
The country would not be able to raise any finance on world markets.
In short Greece would be ruined.
The possibility of debt restructuring is almost certain but from inside EMU, going it alone is impossible.
That is another factor which is a danger to sovereign states joining the EMU. Once in you almost certainly cannot leave without disastrous economic consequence’s.