Greece...

Cyberman60

antrobus wrote: »

The Greek authorities reiterate their unequivocal commitment to honour their financial obligations to all their creditors fully and timely.

http://www.consilium.europa.eu/en/press/press-releases/2015/02/150220-eurogroup-statement-greece/

Going back to the drachma ain't gonna make that pile of Euro denominated debt any smaller.

Besides, you misunderstand;

Mr Schauble's willingness to expel Greece from the euro is widely shared in Germany. The country’s Council of Economic Experts issued a joint letter on Friday arguing that the eurozone is able to cope with the trauma of Grexit and is likely to emerge stronger in the long-run after shaking off its perennial problem child. “It could boost the credibility of the institutional framework,” said the text, adding that the “catastrophic” condition of the Greek economy had nothing to do with Troika austerity policies.

http://www.telegraph.co.uk/finance/economics/11426378/Greece-averts-bankruptcy-and-softens-austerity-in-last-ditch-deal.html

The Germans would be quite happy if Greece quit. It's the Greeks that want to stay in.

Going back to the drachma means they can renege on ALL of the Euro debt. :eek:

antrobus

Cyberman60 wrote: »

Going back to the drachma means they can renege on ALL of the Euro debt. :eek:

It's the other way around; reneging on the debt would result in Greece being thrown out of the Euro.

Cyberman60

antrobus wrote: »

It's the other way around; reneging on the debt would result in Greece being thrown out of the Euro.

Indeed, but they want to be thrown out of the Euro if they see sense. :rotfl:

Generali

antrobus wrote: »

It's the other way around; reneging on the debt would result in Greece being thrown out of the Euro.

There is no process available to throw Greece out of the Euro and the Greek Government could simply veto the introduction of any rule to do so.

jjlandlord

Cyberman60 wrote: »

Going back to the drachma means they can renege on ALL of the Euro debt. :eek:

No, in itself it would just mean to still have to pay back all of these euros while their currency would likely be worthless...

Thrugelmir

antrobus wrote: »

The Germans would be quite happy if Greece quit. It's the Greeks that want to stay in.

The concept of the EU as a federal superstate is greater than one individual country. The rules are the rules.

Cyberman60

jjlandlord wrote: »

No, in itself it would just mean to still have to pay back all of these euros while their currency would likely be worthless...

Nobody can force them to pay back the debt. Their country is a basket case anyway and they won't be the first not to repay debt. They really have little to lose.

antrobus

Generali wrote: »

There is no process available to throw Greece out of the Euro and the Greek Government could simply veto the introduction of any rule to do so.

Greece's membership of the Euro, or indeed of the EU itself, arises because Greece has signed the relevant treaties. Under the Vienna Convention, you can terminate or suspend the operation of a treaty against any party which is in material breach of said treaty.

jjlandlord

At the end of the day, if an independent country wants to do something then it can just do it.
It boils down to the consequential cost for everyone and how strong the country is to impose its will.

Cyberman60 wrote: »

Nobody can force them to pay back the debt. Their country is a basket case anyway and they won't be the first not to repay debt. They really have little to lose.

Yes, but you said that leaving the euro would mean that they could renege on the debt, which is not the same and incorrect.

antrobus

jjlandlord wrote: »

At the end of the day, if one independent country wants to do something then it can just do it.
It boils down to the consequential cost and how strong the country is to impose its will....

Absolutely. When it comes down to it, if Greece wants to default it can default.

Although I would note that Greece has defaulted before. A number of times. And yet its economy is still a "basket case". Which might lead one to conclude that default isn't necessarily a magic solution to one's economic problems.

jjlandlord wrote: »

...Yes, but you said that leaving the euro would mean that they could renege on the debt, which is not the same and incorrect.

That's what I've been telling him.:)