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A Flashback to Greece Crisis

Our world thinks of adopting changes after it has learnt the hard way, often by suffering or by tragedies. States develop insight after they have undergone the ordeals. A similar incident took place with Greece during the Greece debt crisis.

Greece’s economy crumbled and debilitated making its individuals suffer financially. Austerity measures imposed upon the Greek shrinked their disposable income and tightened their pockets. The extent this economic crisis was so intense that it brought several thousand Greek on streets. On the inside, the Greek economy was breathing its last. Unpaid debts, mounting interests, statistical misportrayals and bankruptcy encumbered its already weak shoulders. In the midst of these circumstances, many thought that Greece was on the brink of breaking away from EU because one of the major causes of the crisis was the fact that European nations share common currency that is Euro.Hence, Grexit (GReece EXIT) from EU was thought to be close. It was a point of great interest for the  international media as it was multi-dimensional in its impacts. Hence, it is worthwhile to analyse the influences had Greece exited from European Unions.

The first major impact of Grexit would have been a sudden fall in the value of the new currency of Greece. Since Greece had taken all its debts in Euro, it would have to return them with a similar weightage of value which would have harmed its own currency. The second impact would be the precedent that would’ve been set. European Union has been known for the smooth running of its member countries with unity and harmony. This exit would have been a question mark at this coherence and unity. The international reputation of EU would be at stake and the legacy that it has for the entire world would be hurt.

Another major influence could be upon United Kingdom that is already quite prone to exiting EU. It is already no longer a part of EMU as it has its own currency, pound. But still continues to be a part of EU, at large. Grexit would have been the final blow to the disenfranchisement of UK from EU. UK would not have let the chance go futile. Hence, Grexit would have paved way for the disintegration of European Union.

However, on the positive side, Grexit would have had its benefits too. The economy of Greece would have stabilized in the long term. After short term depreciation of its currency, it would have been able to stand up on its own feet on economic grounds and get free from the constraints of sharing the same currency as economic giants like Germany and France. With a more stable economy, Greece would have been able to develop its tourist sector, which is a major contributor to its economy, till more productive heights.

In a nutshell, it can be said that Grexit was a double-faced sword with both its perks and costs. However, it really opened up a new area for perception and thinking for the international world.

Malyaka Imran 
Beaconhouse School System
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