Tuesday 16 August 2016

Learn why Greeks could fallen in love with 'GREXIT'

GREXIT

Greece's troubles ecnomy could create a doorstep for its own GREXIT.

Austerity measures slapped on the country by Brussels in return for a third bailout have meant stringent tax rises and harsh spending cuts.

Yet there is little sign that a recovery is in sight and many feel another disaster is looming.

Unemployment is close to 24 per cent.

And the economy is expected to shrink by another 2.3 per cent this year, despite a surprise 0.3 per cent of growth reported in the second quarter of 2016.

It follows a biting six-year recession that lasted until 2014.

Crippled by a whopping €320billion (£278bn) of debt, Athens has little room for manoeuvre.

Now it's thought Greece is just another crisis waiting to happen in what is likely to be a rerun of last summer's debacle.

Aristides Hatzis, associate professor of law and economics at Athens University, said: “If we continue down this road, a fourth, even a fifth, bailout should be expected.”

“I don’t see any progress. The economy is stagnant, the private sector devastated, the public administration underfunded and ineffective. And there is always the spectre of Grexit at the end of the tunnel.”

A backlash against the European Union is now on the rise in line with other states in the bloc and amid Britain's vote to leave.

Just half of Greeks believe remaining in the euro is good for the country, according to the Guardian.

The International Monetary Fund (IMF) is among the view Greece can't recover without debt relief.

But Germany is loathe to allow the country off the hook for money owed.

Critics believe it's now only a matter of time before Greece is back in the limelight for all the wrong reasons.

George Pagoulatos, professor of European politics and economy at Athens University told the Guardian: “No economy can withstand endless recession and stagnation.”

“At some point there could be a change of preferences, with forces who would want to continue outside the euro.”


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