To even begin contemplating leaving the eurozone, at a bare minimum Greece would have to start printing drachmas again, recalculate all prices and assets denominated in euros, and hope to raise funds through bonds that could only be issued at astronomically high rates.
Inwhen the European monetary union was launched, Greece failed to meet the criteria again, but managed to squeeze into the body two years later. Public finance consequences[ edit ] Main article: Greek government debt crisis As a result of the financial audit, Greece fell in the list of the loan creditability and paid more interest on its loans compared with other EU countries.
At this vital moment for Greece and Europe, nobody knows. Between October and MarchGreece experienced capital outflows of almost 28 billion euros, and its newly elected leadership has had little luck in gaining any debt relief from European creditors.
Bailouts from the IMF and other European creditors were conditional on Greek budget reforms, namely cuts to spending and increasing tax revenues.
The economy has shrunk by a quarter and half of all young people are out of work.
Share via Email Photograph of the Parthenon, Athens, Greece, taken inthe year the country applied to join the European Community. Also, there were arguments about massive " creative accounting " employed by many states in order to meet the deficit criterion for entry into the Eurozone.
Originally, the EU was seen not as a seamless financial market or even a free trade zone, but as a space for political and social cooperation.
Later entrants from central and eastern Europe had to pass stricter standards. It is easy, in retrospect, to blame Nick and his compatriots for borrowing and spending too much which they did and for skirting their fiscal responsibilities and believing too glibly in the glories of union.