Greece has been in the international headlines on a daily basis of late, and sadly not for the best of reasons. You cannot fail to have seen, heard or read something about the difficult economic situation it is experiencing.
One of the much muted suggestions to help rectify the budget deficit is that Greece withdraw from the eurozone and revert to the drachma. Why are some people suggesting that this is the way forward? Would it solve the country's problems or might it result in financial turmoil for all?
Who is right? Will Greece remain in the eurozone or will it withdraw, and if it does leave, even temporarily, how will that affect the other countries that are currently struggling, and indeed the euro project as a whole? The questions are endless, opinions divided, but answers are few.
We invite you to discuss this topic, but please note that only ONE post per member will be permitted.
Think carefully before you post!
Agni
Message posted by kerkyra on 03 March 2010 at 5:41pm - IP Logged
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Difficult one.
Yes & No!!
If Greece were to revert back to the Drachma the solution to re-value and start from fresh may work, but unfortunately Greece along with other European countries rely on handouts from Brussels.
Ok without these handouts it may be possible for Greece to work out a strategy, but looking at the economics I don't think that this is possible.
Obviously these problems have come about from previous governments and the lax attitudes to tax enforcement etc.
I still think whatever the solution it will be the poor person in the street who will have to pay for these mistakes.
I will continue to support and promote as much as I can Greece/Corfu and it's people.
Andy.
Message posted by MartynG on 03 March 2010 at 6:23pm - IP Logged
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Mmmmmm - quite clearly, Greece shouldn't have been allowed to join the Euro in the first place, but it managed to fudge the entry criteria (by way of foriegn currency swaps etc) so it's far too late for that argument now, except to say that the current crisis is directly related to those actions.
Now that the country has joined the Euro, the usual mechanisms which would allow it to deal with the problems on its own (the use of devaluation and interest rates) are no longer available. The consequence is that the country will default on its financial obligations unless extreme internal measures (as are being applied/proposed) are adopted or there is a bail-out, which is probably illegal under EU law. The trouble is, if Greece does default, it is quite likely that it will drag the other "club med" counties down with it and the whole Euro project will be in severe crisis - something that Brussels wants to avoid at all costs!
The downside of staying within the Euro and imposing the sort of measures that are being proposed (higher sales taxes and so on) is that it will make the country as a whole less attractive to tourists as well as making domestic spending much more expensive. Both of these factors will, in all probability, serve to have an adverse effect upon tax revenues, thus making a bad situation much worse.
On balance, it might just be better for Greece to come out of the Euro voluntarily - after all, a stategic retreat must be better than a complete rout, although, I must confess that I'm not clear upon what the ramifications would be for the Euro as a whole. I suspect that one effect would be to increase the size of the international debt, due to the effects of exchange rates. However, Greece might be better able to fund the repyments if tax revenues are higher due to lower sales taxes lifting the economy generally by encouraging spending (so long as this isn't financed by borrowing). I don't see that Greece would have to withdraw from the EU itself - after all, membership of the EU isn't dependant upon Euro membership.
Martyn
Message posted by Zarkos on 03 March 2010 at 7:41pm - IP Logged
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I don't think Greece should have ever been allowed to join the Euro in the first place. Its fiscal regulation and relaxed attitudes to regulation make it incompatable with countries like Germany and Holland. In the end the attitude of have now and pay never has caught up with Greece; sounds a bit like the UK governments attitude. They preach fiscal prudence to the population and don't practice it themselves. That of coarse is why we love Greece because it is not like a typical Northern European Country and may that long continue.
Message posted by JohnandHilary on 03 March 2010 at 7:46pm - IP Logged
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I think that Greece will commit commercial suicide whatever currency is used. Businesses involved with tourism and building have had it to good for to long. They have blatantly pocketed monies that should have been paid in tax and as such have had a very good standard of living, that standard of living will never go into reverse, so who will pay for them to continue to live the way they are used to? Us!
If the Drachma was to return the cost of fuel, foodstuffs etc. etc. would still be the same, just converted from the old euro price to the drachma, basic economics.
Bottom line is if Joe Spiros wants to buy a new pick up and he hasn't made enough money in the season then Joe Bloggs pays for it. The mindset has always been that if the tourist numbers are low then the price goes up to compensate.
I do however agree that the newly proposed taxation on alchohol and tobacco should be implemented to bring them into line with the rest of Europe, perhaps then the smoking ban might be taken more seriously.
As far as onward trading goes how many Drachma would be equal to a pound, euro or a dollar? Remember Germany at the end of WW2 when their financial situation was in meltdown, workers were collecting their wages in wheelbarrows unable to carry the coinage!!
Hindsight is a wonderful thing , it is all very well saying that Greece should never have been allowed into the EU because of its' economic situation . But who was to know that was the case ? If , on entry to the EU they presumably had to declare they were solvent how were they to be disproved other than sending auditors in and going through the ' books ' ?
Regards...John
Message posted by jbtapscott on 03 March 2010 at 7:51pm - IP Logged
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Not sure that bringing back the Drachmae will achieve much. The country ("Greece plc") has too little money coming in to meet its outgoings and it wouldn't matter what currency this was expressed in as the inbalance would still exist. Better management of the income (viz. make sure that everybody pays the income tax that their "real" incomes dictate) would be a more viable start.
Unpopular I know, but when you see reports that taxi drivers only pay EUR 1,200 tax a year, doctors claiming their annual income is EUR 20,000 a year and only 63% of the income tax that should be paid is actually being paid, then surely this is the area to get sorted.
Message posted by stevie jay on 03 March 2010 at 8:19pm - IP Logged
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stevie jay
Quote: (viz. make sure that everybody pays the income tax that their "real" incomes dictate) would be a more viable start.
There is nowhere in the world where this will happen, the biggest culprits to this fraud are the rich! with their well paid accountants, sorting things for them and not forgetting our honest politicians! I will say no more!!
Message posted by Thea on 03 March 2010 at 8:29pm - IP Logged
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Sadly I personally don't think an exit from the Euro and a return to the the Drachma will make much difference.
The problems are at all levels of society and it will take a huge change in public attitudes before things will get better.
As an example, I am looking at starting my own business and I have not found one Greek person who believes I should register my business and work legitimately. They all suggest that I should work on the 'black' because why should I pay taxes and insurance? I personally believe that if I choose to live here then I should contribute to the country but I am considered mad!
This lack of a collective responsibility is the cause of the problem here and it will take a complete change in moral attitudes before things get better.
My personal opinion of course!
Message posted by Chiad Fhear on 03 March 2010 at 9:15pm - IP Logged
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The possible demise of Greece has all to do with the Olympics! If we could just revert to simple living styles instead of trying to be one up on every one else life would be so easy!
The good Lord help us all when ENGLAND get the Olympics in 2012. There's no way that Scoltand, Wales or Ireland are going to benefit from any part of it. And who knows, ENGLAND deserve to follow the same road! Cheers SEB (and your Buddies)!
And YES, while I'm on my (Patounis/Corfu Olive Oil) soapbox), I reckon Greece SHOULD go back to the Drachma. We ALL got a much better deal and would continue to do so!
Chiad Fhear
Scotland!
Message posted by C4owner on 03 March 2010 at 9:26pm - IP Logged
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IF (and it really is a big IF) Greece did withdraw or was expelled from the 'Euro' group and reverted to the Drachma (or whatever else they decided to call it) my thoughts are
1. What would it actually cost to re print and issue all the required bank notes and coins?
2. What would it cost to reprint all the forms, invoices, till receipts, tax returns and other related documentation etc. etc.?
3. What would it cost to re educate the younger section on the community into understanding and using a different currency?
4. How long would all the above take?
They are only a few of the obvious implications of going back to the Drachma (I dread to think of the hidden costs of banking, borrowing, lending, taxes, the impact on tourism...
The list goes on)
I think everyone would realise that the costs could only add to Greece's financial problems so shouldn't be considered as an option.
Some serious belt tightening appears to be the only viable option whether the Greek community as a whole like it or not.
Whether they are willing or prepared to accept it, that's already under discussion in a different topic.
Message posted by Kernowman on 03 March 2010 at 10:03pm - IP Logged
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All I can add is thank God the UK didn't join the Euro because we would be in a worst situation than Greece and sure as hell the likes of France and Germany wouldn't help us out at all
Message posted by GUV1 on 03 March 2010 at 10:16pm - IP Logged
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I haven't got a clue. But I do know when someone is taking a swipe at ENGLAND!!
Message posted by ladybird on 03 March 2010 at 10:45pm - IP Logged
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ladybird
Hi
To bring back the Drachma would be financial suicide as it would not be able to compete against the pound,euro and the dollar, Greece needs the support of the eurozone.
Message posted by andy&lu on 03 March 2010 at 11:29pm - IP Logged
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I think ladybird hits it on the head when she says Greece needs the support of the Eurozone.
Unfortunatley, with a system of management and decision making with the eurozone leaders that is akin to that of Greece in the recent past,
The Eurozone should be one of the major politcal and economic powers in the world, but through weak and devisive leadership, that appears to just look out for number one, it has allowed countries in the Asian block to still its thunder.
Message posted by Lavinia on 03 March 2010 at 11:40pm - IP Logged
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Like so many readers, I do not know how Greece can get out of their mess, whatever way they go. But, I have to agree with MartynG's and Zarkos's comments that Greece should never have been allowed entry into the EU.
I have been going to Greece now for about 30 years and have watched their development before/after they joined the EU.
For the last ten years to present, I have watched with total disbelief how property owners were given such big loans for new blocks, swimming pools etc. It was like my home town, Dundee in the 1800's with the jute baron's. If you build a 100 room mansion, I will build a 150 room mansion. Only problem is, that these families had cash in hand to do these things and how do our friends in Greece ever pay back the banks, which will have an effect on their recover.
Let's hope it all works out for them.
Kind Regards
Tom
Message posted by Susanna on 04 March 2010 at 12:25am - IP Logged
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Well said, Lavinia. There is, I suspect, far more to all this than meets the immediate eye and a lot more danger than we can even begin to think of at the moment (from outside Greece, and even Europe).
I cannot think of a single reason why Greece should choose to revert to the drachma - whatever is in store for us now would be a million times worse were that to happen.
I also don't think it is really fair to say that Greece should not have joined the Eurozone. There was never any understanding that all the participating countries had to be equal, or ever could be equal.
It is obvious, though, that tax evasion in Greece must be stopped somehow. Personally I don't think that increasing VAT is going to do any good at all. It will cause serious hardship to the man in the street and not really affect those who have milked the system dry for many years.
Message posted by Lawrence on 04 March 2010 at 1:28am - IP Logged
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Lawrence
Euro or drachma, at the end of the day you are still going to have the same government running the country. No matter what happens the Greek people are in the hands of their government. I just wish the Greek people all the best in the world . Yammas
Message posted by Alecko on 04 March 2010 at 3:13am - IP Logged
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Here is an interesting post that I have found. It answers some of the questions asked in this thread.
http://mises.org/daily/4091
We Brits had it good in the days of the Drachma. I have been visiting for over thirty years and every year we got more drax for the pound so never really noticed any price increases. I remember getting 80 drax to the pound in 1967 and the last year of the drax. I think we were getting 450 to the pound( could be wrong on that, someone will put me right I am sure)
I don't think they will go back to the Drachma as it would be very expensive to issue new currency as mentioned by C4 Owner.
Alec.
Message posted by gtsouk on 04 March 2010 at 7:14am - IP Logged
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gtsouk
No. I believe that if all Greeks paid the proper taxes on the correct income and the government did not borrow beyond its limits, the economy would be at a normal level
Message posted by razaker on 04 March 2010 at 8:58am - IP Logged
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Moving from the euro back to the drachma is like closing the gate after the horse has bolted, Greece has to stick with the euro & weather the bumby storm ..
Message posted by Happy Wendy on 04 March 2010 at 9:29am - IP Logged
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Absolutley yes I have loads of Drachs in my draw enough for a very lovely meal at my favourite "Taverna Agni".
Sorry to be flippant but finances are not my best subject,just ask my husband!!!!!!
Message posted by heathermac on 04 March 2010 at 10:37am - IP Logged
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I don't think bringing back the Drachma would be of any help and very costly.
I am sure the euro helps tourism (with the exeption of British people) don't have to consider currency change etc and there are many people from the euro zone who holiday in Greece.
There is more than enough money in the Greek black economy I guess to solve a lot of the problems.
It is very easy for us to say tax evasion!! make everyone pay their taxes!!
I could never understand the Greek mind set about this until I discussed this issue with a young greek friend who has travel and seen how things work in other parts.
Being in business in Scotland we were always happy to pay tax, if you were paying tax you were making money so living well.
So why was this not greeks thinking?
She said historical the money that government and officials had stolen was the reason.(we are talking millions and millions) Why pay tax for officials to use to build big houses, buy boats etc for themselves.
The money wasn't used for schools, hospitals, roads etc.
(At a school in town the parents had to club together to pay for new toilets and an gym because the facilaties were so bad.)
She thought the fuss in the UK about government minister claim a few extra pounds was funny.
So I can understand now why this is such a problem and it will be so difficult to change this thinking.I would have felt the very same. So I don't think we should be so quick to condem tax evasion,it would seem some people in government etc didn't want to help their country and fellow country men only line their own pockets which is terrible.
Now it seems that people who can least afford to will have to bare the burden of this.
I know a lot of Greek people said everything got more expensive when they went into the euro, but I am sure many people benefited from the euro subsidies as well.
Message posted by violator on 04 March 2010 at 12:06pm - IP Logged
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The Greek government are increasing tax on alchohol, fags and petrol. And they are raising VAT to 21%. It dont matter what the currency is, that bottle of Mythos is going to cost a bit more this year.
Tony
Message posted by janmanessi on 04 March 2010 at 12:15pm - IP Logged
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Should we revert to the Drachma?
No! It would make our problems worse.
Should we have an anonymous, free hotline to inform on tax fraud?
Hell Yes!
Help Greece and those that live in it..ask for a reciept whenever you pay for ANYTHING and ask our foreign friends why they are driving around for months, even years, even decades on Greek roads with no Greek car tax!
Message posted by petergm on 04 March 2010 at 12:55pm - IP Logged
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Is this the start of the break up of the eec? Lets ask the question, how many goverments realy want to be in the euro/eec, what they say to us and what they say behind closed doors???.
I can remember a few years back sitting in a taverna in Kaloura,overhearing a coversation between two well spoken and well educated gentlemen, must of been civil servents, saying its only a matter of a few years before the eec will break up due to the euro, it would happen now but nobdy got the guts to do it.
Message posted by SusieM on 04 March 2010 at 6:34pm - IP Logged
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If we consider Greece isnt the only one in a mess - I suspect it is on the horizon that some of the other Euro zones countries who have had...shall we say a "dodgy" financial past...Italy for example will face a similar crisis once the covers come off. Truth be in known with the exception of France, Belgium, Netherlands and Germany everyone else in the Euzo zone is in a bit of a pickle right now.
Any retraction from the Euro will have to come from Brussels and be vitoed by all member states.
My view - but do check our the link
Message posted by Daniel&Sylvie on 04 March 2010 at 10:41pm - IP Logged
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Oooh - such a difficult question to answer!
I only know that rural Greece was in such dire poverty after the second world war that Oxfam was set up specifically to address problems of starvation here (mostly) and in a few other countries.
My 30 year old experience of coming here on holiday was that in visiting villages in and around the mountains, my attitude was one of disbelief. There was no electricity, no sewage systems, no care facilities, no freedom of expression. The miltary junta was in power (as supported by the British) and some Corfiots were offering serious money for my jeans (just like the old USSR)
The eec made it posible for Greece to offer some sort of financial opportunities to its citizens to make money via tourism and its commcommitent industries.
We could argue till the cows come home about how that money was allocated, spent and accounted for - but there is no doubt that Greek society as a whole has benefited
Unfortunately, whilst rich Greeks are fine and dandy - poor Greek people will still suffer. Average wages here are very low, employment opportunities are negligable and local industry is non existant.
Greece is now part of an international financial community - like it or not - and subject to marketing and banking pressures. Merchant banks are making millions banking on Greek losses.
If anyone has any suggestions about how to stop money markets "doing their thing" - me and Mr. Papandreau would be more than grateful!!!
Love the Drachma - but disaster beckons!!!
Cheryl xxxx
Message posted by PaulEFC on 05 March 2010 at 6:16am - IP Logged
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There is no way that you could revert back as it would be chaos and would leave Greece very isolated. I'm not a financial expert but I believe Greece has taken a lot from Europe with handouts and developments from it's European neighbours. I'm constantly seeing billboards and posters saying that "this has been paid for by european money etc. etc."
Wasn't the harbour at Nissaki built with european money?
If what is in the press is true then it seems as though there is a huge black economy in Greece which has now being caught out. I'm not saying the same thing doesn't happen in other countries but it seems rife in Greece.
What I do know is that Corfu is getting very expensive compared with other holiday destinations even though others are also more expensive than they used to be.
We all love Corfu I was away last week in the Canaries and was thinking why I love different places and why I return. It boiled down to the fact that Corfu always offers a lovely ambience, normally guaranteed weather and such friendly people but now at a price!!!
Message posted by Bill on 05 March 2010 at 12:37pm - IP Logged
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I can see advantages and disadvantages, but am not sufficient of an economist to really appreciate the implications. However, if this is ever muted as a real option either as a 'euro holiday'as is being suggested in some quarters, or a permanent reversion I believe it is essential that the government allow a referendum to see what the Greek people want.
Message posted by holhil on 05 March 2010 at 4:14pm - IP Logged
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I cannot see that exiting the Euro and reverting to the drachma would benefit Greece at present. Unfortunately Greece is now paying the price for "cooking the books" to join in the first place. For that both the Greek government and the EU are jointly responsible. At the time, some economists were surprised that Greece satisfied the supposedly strict econcomic criteria.
The austerity measures are going to hurt badly. And I cant see the whole process working until the problem of corruption is resolved.
For that to happen the Greek people will need to trust their government and anyone whose salary is paid for from the public purse. And by this I mean - know beyond doubt that that public servants are not on the 'take' from the people. Until that happens the ordinary man on the street will continue to try and hide money in the black economy and so the horrible cycle will tend to repeat.
Message posted by Ray and Gisela on 05 March 2010 at 8:39pm - IP Logged
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I think that it will push up the Black Economy, if you have to pay more in the shops you have less to spend so with this black market in place it will then get more used. And thay no that sum will be cought but it allways is the other guy.
Like car tax thay think o/k my car is fifteen years old not werth a € so if the police stop me and take it away I gust go out and buy a nother one with the mony that I have saved on tax in the larst ten years.
Eaven in Corfu town I play a game looking to see how many cars with out a 2010 tax.
The list of things you could add would be to long.
Will the Greeks like to have their old goverment back or try and werk with the new goverment to bring it in line with other e/u states.
Could it be Kick the Greeks as thay are down so that other states do not have to show how much thay are in a mess.
Ray.
Message posted by lindybell on 05 March 2010 at 8:54pm - IP Logged
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I bet the Drachma feels better than the toy town Euro? Maybe that would be one good thing about it. After handling the British notes, they seem so like toy money, or is it me?
Message posted by becky on 05 March 2010 at 9:12pm - IP Logged
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Quote: Originally posted by lindybell on 05 March 2010
I bet the Drachma feels better than the toy town Euro? Maybe that would be one good thing about it. After handling the British notes, they seem so like toy money, or is it me?
Not toy cash, just different...mind you I don't care what currency we use wither its £, €, drax or beans!
Bx
Message posted by chris50 on 06 March 2010 at 1:04am - IP Logged
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I absolutely love Greece lets make that clear.
BUT I have always said on this forum and others, that they Greek people, in general, are after one thing and one thing only - money. They make money by being genuinely nice to old returning holidaymakers and they make money by being 'genuinely' nice to new holidaymakers.And then when they make money - they keep it! Hence poor roads,poor sanitation,fly tipping everywhere,etc etc because they do not care about anybody but their family. Now that is not a bad thing but a Government built on a Greek mentality which allows such insular values cannot be good for the greater issues.
I for one know of a Mykonos farmer who used his EU grant intended to change the shape of his land and help farm in a more efficient way, in fact used it to build a house for his daughter. AND WE ARE PAYING FOR THIS !!!!
Message posted by simonbell on 08 March 2010 at 5:47pm - IP Logged
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Reading these posts it is clear what Greece's problems are caused by - the Greek mentality.
Whatever they do, they must not put up prices. That will stop the tourists coming. We haven't been able to afford Greece for a while but were planning to come back this year. We're watching the situation carefully.
Message posted by openside on 11 March 2010 at 12:30am - IP Logged
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The Greeks would deffo benefit from a return to the Drachma,a devaluation of their currency would see a return to the good old days when you could sit in a bar and say 'blimey thats the equivelent 20p for a beer'
Expats out here would see their UK pensions buying umpteen more than now
Property prices wouldnt suffer either (IMVHO)
Ditch the Euro!
Message posted by papapete on 21 March 2010 at 8:40pm - IP Logged
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Greece should not only bring back the drachma,it most likely will. Certainly there would be an initial upheaval and minor panic, but from what i am reading, and hearing, there seems to be no other way. The idea is for the drachma to be brought back, (some say the printing presses are already at work...) but also for an immediate devaluation (compared to the original conversion of 1 euro to 340.75 drs.) There is talk of it being about 50%, which would bring the pound, for example, exactly back to its pre-euro position in comparison to the drachma, 562 drs.if not more! This would obviously benefit tourism as long as the prices didn't go up too much here.
Many of us remember all too clearly, how prices for smaller things went up threefold after the change from drachma to euro. Will they go back if Greece reverts to its old currency? Who knows...
I remember in 2000, when my second daughter was born, we commented on how she would never know of the humble drachma. Who knows , maybe we were wrong...
If anything we will know soon. Rumours say if it does happen it will be around Easter...
Message posted by Peter G Ross on 21 March 2010 at 9:13pm - IP Logged
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If Greece brings back the Drachma forget your imported foods, drinks, consumer goods and cars because no one will be able to afford them, who would want to export to what would in effect become a banana republic with an almost valueless currency which would be subject to repeated devaluations.
There would be a black market for Euros/Dollars etc. because they would be the only reliable currencies acceptable to buy foreign goods with the drachma buying less and less over time.
The only way Greece can survive is to stay in the Euro and for its inhabitants to accept that they have to play by the rules that every other civilised country plays by.
Just my opinion.
Message posted by SusieH on 21 March 2010 at 9:39pm - IP Logged
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True that Greek costs increased after joining the Euro, I suspect that all others in the EU suffered the same. Greece has to live in the real economic world and solve it's own problems, going back to the Drachma and trying to exist as a pleasant backwater of Europe is a no-hoper.
I've spent many holidays late season in various parts of Greece and noticed the shops (the larger supermarkets excepted) usually have tills open so receipts are not registered. No wonder the government doesn't have enough cash. Going back to points raised about money to Greece from the EU and particularly the tourist industry. Suspect most of this has gone into a limited number of pockets and the general population has not seen much benefit.
Message posted by Viv D on 22 March 2010 at 9:33am - IP Logged
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Well here goes my one post on the subject, so you can all only shout at me once.
I found this on a site that was said on the 1st March 2010.
This is a third option as to should Greece stay in Euro or Pull out of Euro.
Have only printed part of it.
Viv
=========================================
The three options presented by Niall Ferguson are austerity, bailout or default. The fourth option, which has been presented as the doomsday button, would be Greece withdrawing from the EU entirely and going back to the drachma. That would allow the Grecian government to implement the policy that the Eurozone prevents: devaluation. The trouble is: once Greece is out of the EU, it's out. There are no provisions for withdrawing from the Euro without withdrawing from the EU itself. Once out of the EU, a nation no longer qualifies for adjustment payments. More fundamentally, more viscerally, its citizens and businesses are no longer integrated with EU economies. They'd be on the other side of the paper divide, which would have profound dislocative effects on the Grecian economy. Should the drachma be restored in this way, it would fall hard before the dusts settles. So would the Grecian economy.
Moreover, there's a domino problem. The Grecian economy is only a small part of the EU's, but there are other nations resorting to deficit laxity that are beginning to look like Greece. The largest is Spain, whose GDP is about 20% of the Eurozone's. Greece leaving may prove to be fissiparous.
That's why there's been so much anger and agony over the issue. The obvious solution – Greece withdrawing from the Euro but staying in the EU itself – isn't permitted by the Lisbon Treaty. Austerity may be politically impossible, and the consequences of it may lead to a kind of government that would disqualify Greece from EU membership. A bailout would create a free-rider problem that would balloon as soon as Portugal, Spain and Ireland got the news. A partial default seems to be the least unfeasible option.
Unless…a trick from American bankruptcy law is adapted to Euroland circumstances. That tool is prepackaged bankruptcy. It adaptation is prepackaged readmission.
It's not mandatory to join the EU and accept the Euro. Nor is it mandatory, according to the Copenhagen criteria, for an applicant to exhibit fiscal restraint. That's only required for admission to the Eurozone. A prepackaged readmission would be Greece leaving and concurrently re-applying. It takes two years to leave the EU. If the re-application process is expedited, Greece could be let back in on the same day it left. Needless to say, the process would be eased by the fact that Greece is currently a member of long standing. It would be a novel procedure to pre-approve Greece, but it's not explicitly forbidden.
During the brief interstice between ex-member and new member, Greece need only reintroduce the drachma. Then, it's back in the EU but with its own currency again. If the same structural-deficit problem arises, then drachma devaluation would take care of it.
Doing so is, of course, easier written than done. It would require a triple time co-ordination: making sure that the drachma was ready to go on the same day as the withdrawal and re-admission, which also require simultaneity. If this course is taken, then the drachma had better be ready to go months in advance of the day.
This procedure, if successful with Greece, could be used for any Eurozone country whose fiscal house becomes disordered. It means a step backward for the Euro, which may render it beyond the pale of the possible, but it also reduces an overcrowdedness that is clearly shaking the Euro (and the EU) in entirety.
Of course, there's always default instead...along with its consequences, including to German banks
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