Greece must leave the EU for its own benefit
Debate Rounds (3)
You will be defending the case that it would be better for Greece is it saying in the EU
At present Greece has pursued an orderly default on its privately held debt, but it remains in the euro area. Default and departure are thus not necessarily connected. I have argued elsewhere that Greece needs to default also on its official debt to reduce its total public debt to a sustainable level. But here I argue that it must not leave the euro area because the result would incur immense harm to Greece, other countries in the European Union, and to the world at large. It would not be merely a devaluation for Greece but a serious, possibly mortal, disruption of the European Monetary Union (EMU). John Normand and Arindam Sandilya of JP Morgan(1) issued a paper in December 2011, concluding that the damage would be enormous. This comment agrees with that analysis, but tries to take it further.
The EMU would not be the first multi-country currency zone to break up. Europe has seen at least five breakups of such monetary unions in the last century, but they have been completely different in nature. Two breakups occurred under the gold standard and with separate central banks and payment systems, and they were benign. The Latin Monetary Union, first with France, Belgium, Italy, and Switzerland, and later including Spain, Greece, Romania, Bulgaria, Serbia, and Venezuela, lasted from 1865 to 1927. It failed because of misaligned exchange rates, the abandonment of the gold standard and the debasement by some central banks of the currency. The similar Scandinavian Monetary Union among Sweden, Denmark, and Norway existed from 1873 until 1914. It was easily dissolved when Sweden abandoned the gold standard. The outstanding feature of these currency unions was that fixed exchange rates were guaranteed by the gold standard, and that central banks and thus payment systems remained separate.
Greece MUST leave the European Union in order to reset its economy and continue as an independent country, and not a vassal to Brussels and a province of the EU. It needs to leave to begin to grow again.
The idea of EU has been flawed from the beginning, and the introduction of the 'common currency' will be its death. This is why it has only lasted less than 10 years before a major crisis.
Different economies CANNOT have the same currency. Greece is MUCH LESS competitive economically compared its northern European neighbors. Greece's interest rates were TOO LOW and this caused them to borrow more than they would have been able to on its own. Greece, with the help of big banks such as Goldman Sachs, LIED about Greece's real debt, until they could not do it anymore, and the real debt data came out.
Being less competitive means that Greece must have a cheaper currency to compete. Greece has lost millions of euros of profit because of this. Greece used to crush Turkey as a popular tourist destination. In less than 10 years, Turkey has many more tourists, because it is cheaper and less expensive in Turkey. Greece cannot economically compete with the EU and must leave the EU.
Greece does not control its own policies, and everything is dictated from Brussels. The last Prime Minister to have any say was George Papanderou. He was 'not too politely' forced to resign from his post, after he offered the Greek people a referendum on a 'Yes' or 'No' vote to stay in the EU. Two days later, he was forced to resign, and a puppet, Papademos, was placed into order. Puppet Papademos was the Vice President of the European Central Bank from 2002-2010. Obviously, we know where his loyalties were.
The troika has been flying into Athens every month or so to make demands of the Greek government. The Greek government listens to what they say, or they won't get bailouts. Without the bailouts, the politicians would not have a secure grip on power. We know how politicians are power hungry.
The EU bailouts have NOT worked for Greece. It has a 27% rate of unemployment, with near 60% youth unemployment. The economy is NOT growing, no matter what they are saying on the corporate media. Ask any Greek and they will tell you the same. I have family and friends there, and many friends have had to migrate to England or Germany to find work.
Greece will NEVER pays its debt. It cannot. It is too massive. (I don't think the US ever will either, but that's another story).
Greece needs to liquidate its debt (debt forgiveness) in order to start fresh and regrow its economy. It needs to reintroduce the drachma. Even better, it needs to partially or fully back the drachma with GOLD, as it would help strengthen its currency, as initially its currency will drop well below where it will eventually level off at because of the default. Countries have done this before. It would not be the first time a country has defaulted.
There will be short term pains. But, things will get better. Now, there are pains, and NOTHING is getting better. This agony will continue in Greece until the EU collapses.
Check out some videos of Nigel Farage. In a couple of his videos, he mentions how he talked to Angela Merkel. He asked her why would she, knowing that bailouts are unpopular in Germany and would hurt her reelection, not just allow Greece to leave the EU? Her answer- Because the whole thing would fall apart. If we let Greece leave, the whole EU will fall apart.
The EU is just a power-grab by the elites. The people have no say, and are ruled by unelected bureaucrats in Brussels.
Greece must leave the EU to regain its own destiny.
Video to watch:
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