Greece Will Not Leave the Eurozon


On Jan 26, 2015, Syriza won the election of the president of Greece. His won of the election means the antiausterity leftist will hold the power of this tumbledown country. There are many surmises that Syriza’s winning will impulse Greece leaving the Eurozone. Nevertheless, I cannot nod to those speculations.

All those speculations are based on the diffident belief about Greece’s recover from the essential crisis. Greece is suffered with a huge amount of debt and presents little potential ability to deal with it in a short time. For the announcement of the government’s deficit has been declared, the credit rating has fallen from A- to BBB+. The government deficit was 12.7% of Greece’s GDP in 2009 and this number has surpassed the assigned limit from the European Union significantly. (which was only 3%) After the election, one of the biggest creditors of the Greece—Germany presented a tough attitude about the relationship between Greece and European Union. The German government indicated Germany has been already prepared for Greece’s leaving from the EU. This kind of attitude is not ridiculous since Greece seems impossible to pay off the debt for Germany, in the coming dozen of years, at least.

However, what if Greece regain the credibility? Actually, from the election, we can discover that Greek people have had enough about the intensified monetary policy and they wish the new president can lead them jump out of the dark marsh. “Syriza surged to victory on Sunday by promising Greeks that it would reverse many of spending cuts and labor-market reforms that Athens’s creditors have demanded of it in return for aid. Mr. Tsipras also has also called for Greece’s creditors—a group that includes the European Central Bank, other European Union countries and the International Monetary Fund—to forgive about one-third of the country’s more than €300 billion ($338 billion) in debt”.( Granted that Syriza can keep his promise and be determined to implement relevant series of actions, we should conceive Greece can make a turn.

Moreover, the European Union will not hope to see Greece’s leaving from Eurozone definitely. If leaving the Eurozone is the consequence, then for other similar European countries like Spanish, Portugal, even Italy will all be disappointed. This means the Europe is facing another big division. No one is willing to see this terrible result. This can even bring a magnificent wave in the worldwide. The first step to recover Greece’s economy is to establish confidence for Greece’s government and people. “‘For all markets, if they gain control, all bets are off. We do not think it is possible for Greece to exit the EU. Or they could if they want to commit sovereign suicide,’ John De Clue, chief investment officer at the private client reserve at U.S. Bank Wealth Management, said.” ( ) Hoping this election can drill the fuel for Greece’s development.

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