A Greek exit from the eurozone appears inevitable and Britain must insulate itself from the effects, former Chancellor Ken Clarke has warned. The Conservative MP branded the new government in Athens “latter day Trotskyites”, and said there was no way their demands could be met.
“I can’t see how you can sensibly avoid the Greeks defaulting and the Greeks having to leave the eurozone. “It’s not anything to do with just the Germans, I can’t see why any other states should take a huge multi-billion pound hit again for the Greeks so they can hire more civil servants, raise their minimum wage (and) scrap all their labour market laws.”
He added: “I hope a very great deal of work is going on to minimise the impact on financial markets, on the United Kingdom - because it affects us just as much anybody else in the western world.” ...the euro is still the problem. it is not a functioning currency. basically, greek drachmas would be depreciated against the dmark to a level where greece could perform as either as a tourist hotspot or as an exporter of fine foods. the depreciation between nations is a banker's issue. greeks using drachmas in a greek economy won't see an impact. but use euros and then greece has to be up to the same economic standards as germany. thus, the greeks need to impoverish themselves more than have to. the current arrangement practically forces greece to relinquish its sovereignty. they can't even default and recover like iceland did.
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