Greece: Greenspan predicts exit from euro inevitable

Earlier, UK Chancellor George Osborne said a Greek exit would cause “deep ructions” for Britain.

Mr Greenspan, chairman of the Federal Reserve from 1987 to 2006, said: “I believe [Greece] will eventually leave. I don’t think it helps them or the rest of the eurozone – it is just a matter of time before everyone recognises that parting is the best strategy.

“The problem is that there there is no way that I can conceive of the euro of continuing, unless and until all of the members of eurozone become politically integrated – actually even just fiscally integrated won’t do it.”

Alan Greenspan has long been a critic of the European single currency. Now, the 88-year-old former chairman of the US Federal Reserve has repeated a claim that nothing short of full political union – a United States of Europe – can save the euro from extinction.

Given that few (if any) of the current 19 sovereign governments which make up the eurozone would choose to create such an entity at this time, that means – for Greenspan at least – the euro is doomed.

Before all that, though, he foresees Greece quitting the single currency, but the euro surviving intact. Grexit, he says, is more manageable now than it would have been when Greece got its first EU bailout in 2010.

Earlier on Sunday, Mr Osborne told the BBC’s Andrew Marr Show that the UK was stepping up contingency planning to prepare for a possible Greek exit.

“This stand-off between Greece and the eurozone is increasing the risks every day to the British economy,” the chancellor said.

A Greek exit from the single currency would create instability in European financial markets and cause “real ructions” in Britain, too, he added.

Full article: Greece: Greenspan predicts exit from euro inevitable (BBC)

One response to “Greece: Greenspan predicts exit from euro inevitable

  1. The public no longer has faith in financial politics, the man in the street no longer understands the financial jargon, what they understand is it is bad news always for the general public, we are informed Britain does not like the the Euro, how come they will be upset Greece leaving the Euro? if the Euro is seen as a repressive doctrine of the rich? why should the Greeks abide by that which is seen as a vindictive act that offers no hope? on the contrary if Greece terminates the Euro and is the start of the collapse of the Euro, they have bitten the bullet and shown courage and becomes the hero.