Debate Info

Should Voluntarily Leave Euro should stay in euro zone
Debate Score:7
Total Votes:7
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 Should Voluntarily Leave Euro (5)
 should stay in euro zone (2)

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Greece in Euro zone

Greece's unemployment rate is 23%, government debt is $299.7 billion(129% of GDP),and daily increasing number of people living below poverty line.Germany, France and other EU member states have been trying to help Greece to stay in euro zone and Greece has been lent big amount of money to get back to the stable and developing economy's path.Status-quo is pretty sad-looking, and there are two exits for Greece: to stay in euro zone or leave it. 

Should Voluntarily Leave Euro

Side Score: 5
Winning Side!

should stay in euro zone

Side Score: 2

Why should Greece, Italy and Spain drag the rest of Europe down with them? The euro is on the verge of becoming worthless paper so yes, Greece should get out of the euro zone.

Side: Should Voluntarily Leave Euro
1 point

Absolutely. Imagine these countires(so called PIIGS-Portugal,Italy,Ireland,Greece,Spain) and other EU counties as one card house. When at least one of them falls, all of the cards move and and entire house si destroyed. In order to save the euro, Greece should leave EU zone. As for Germany, it's the most interested state in favor of Greece staying in euro zone because it will be affected the most among other countries if Greece leaves.

Side: Should Voluntarily Leave Euro

The idea of "group currency" sounds like a good idea, but there are a good number of reasons why it is not. The ability of your central bank to set interest rates needs to be commiserate with its ability to access credit risk. You have a number of different economies that are under one umbrella (when clearly they are not the same type of economy). So, they have different credit risk. Spain, Italy, and Greece are still largely agrarian in nature, while Germany is more of an industrial economy. France has a little of both but is significantly larger. Putting everyone under the same currency does not homogenize the risk. It simply shifts risk to a central bank at a less than favorable rate. Germany continues to drag its feet, because apart from saving the Euro, there's nothing in it for them. It's a lose-lose scenario.

Side: Should Voluntarily Leave Euro
1 point

I agree. In addition from the very beginning Greece shouldn't have been allowed in to the Eurozone. "There economy is not harmonised with the core Eurozone economies. Debt, interest rates and unit labour costs are far too high''-states economist Tejvan Pettinger. So the roots of Greece's economy were disadvantage of Greece's entering Euro. If Greece leaves,

In order to stay in euro zone Greece is being asked to implement further austerity policies, but these are proving counter-productive to the long term future of the economy. ''A few months after initial austerity policies, the Greek debt burden is just as high as it was, and interest rates continue to rise'"-reports economist Tejvan Pettinger. Another round of austerity policy is not going to ameliorate the situation, instead it will only aggravate public opinion. If Greece leaves the Euro it'll be able to benefit from a devaluation in exchange rate (could be upto 30%). This will help restore competitiveness and reduce their current deficit.

Side: Should Voluntarily Leave Euro
1 point

Also, being able to have own currence, own banks setting the prices, will help Greece to control and regulate prices' variation, whether it goes up or down. In the future, Greece won't be at the same situation as it is right now, it would be able to set own interest rates for example.

Side: Should Voluntarily Leave Euro

Greece should stay in the Euro Zone. Then, after our next election, and Obama is out of a job, they can get him to run their country. Consider it a gift from the American people to our Greek friends. May Obama bring you all the Hope and Change you guys need ;)

God..., am I ever going to regret this post if Obama wins ;)

Side: should stay in euro zone
1 point

It is difficult to leave the Euro, it could lead to capital flight as Greeks move savings and currency offshore into the Eurozone to protect value of currency. However, leaving the Euro will enable the Greeks to benefit from a devaluation in exchange rate (could be upto 30%). This will help restore competitiveness and reduce their current account deficit 10% of GDP.

Side: should stay in euro zone