The Greek trap and the euro
The greek competitiveness and debt problems are insolvable in the eurozone, however with quitting, Greece certainly would’t be able to pay its debts if the country is not going to convert its eurrodebts into its own currency – claims one of the leading London based economic analyst company.
According to the report of Centre for Economics and Business Research (CEBR), an EU member state can solve its problems if it has competitiveness problem without debt problem or if it has debt problem without competitiveness problem.
However, Greece – which country is struggling with a major debt crisis – is also facing with serious problems of competitiveness: the value of Greek export fell by 25 percent since introducing of euro in the country and the export value worth the quarter of the domestic consumption. While in Ireland, thereis are also high deficits and debt problems but the export value is 176 percent of the household expenditures.
CEBR experts say that Greece problems are unvolvable without a currency devaluation.
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