Dr Fragkiskos Filippaios, a University of Kent expert in international business and the Greek economy, comments on the possible effects of the eurozone crisis on Greece.
He said: ‘Will Greece leave the euro, will other members of the eurozone decide to push Greece out of the eurozone and what will be the implications of such an action? These are the main questions that analysts have been trying to answer over the last couple of months. Recent election results in Greece and the fact that attempts to form a coalition government have failed raise further the uncertainty around the future of the country and the euro experiment.
‘European Union treaties do not provide for a way out of the euro for an individual country, either voluntarily or by expulsion by other members of the eurozone. For both Europe and Greece, such a scenario would be catastrophic. Greece significantly relies on imports for consumption and a return to the drachma would automatically make all imports unaffordable, which would potentially lead to social unrest.
‘The eurozone, on the other hand, benefits from the fact that international investors are focussing on Greece, thus giving some breathing space to Spain and Italy to make necessary structural reforms. If Greece were outside of the eurozone, any scenario is open.
‘Amid this, Greece is heading for elections again on 17 June with a temporary government that consists of non-political persons and cannot take any crucial decisions. Another month lost for those crucial structural reforms that Greece has to go through in order to return back to growth. Recent data show that the Greek economy has regressed back to 2001 levels of economic activity. The stock market indicates expectations are now at their lowest point for over 20 years. Public finances show no sign of improvement and politicians talk as if they have their own personal agendas.
‘Recent polls show that the outcome in the coming elections is far from predictable. The country is in desperate need of a plan that will put it back on a growth path, create employment and give hope to people for a better future.’
Dr Filippaios, of the University’s Kent Business School (KBS), has worked as a consultant for the Ministry of Development in Greece and published in internationally recognised academic journals. Currently, he contributes to KBS’ undergraduate, postgraduate and executive teaching as well as to the design of new programmes. He also acts as a reviewer for various international journals, is an Association of MBAs Accreditation panel member and also an active member of the Academy of International Business and the European and International Business Academy.
Dr Fragkiskos Filippaios appeared on Cross Talk with RT News debating this issue, which can be viewed here.