Greece has now endured five years of financial and economic suffering. The ongoing saga of bailout packages and austerity programs has left the Greek economy in tatters and drained the patience of investors and taxpayers throughout Europe.
As European officials meet in Athens to determine whether the country has taken adequate steps to justify the release of more funds, the question needs to be asked: Should Greece leave the Eurozone?
The answer, regrettably, is yes. A Greek exit would exact a harsh toll on Greek citizens as their euros are converted into much cheaper drachmas. Many Greek banks would fail and other European banks would face severe losses. However, a restructuring of the Greek economy and a more competitive currency could eventually allow the country to regain its footing.
Fears of further exits from the Eurozone could hurt stock prices, push the dollar higher, and press interest rates lower in the U.S. as we stand as the “safe haven.”
A Greek exit would not be welcome but may be inevitable.