August 16, 2012

Greece should state it will use the euro whether the eurozone likes it or not

Sir, George Pagoulatos writes: “Of all Greece’s many problems, including austerity, the threat of leaving the eurozone is the most damaging”, “Greece should not be sacrificed for the euro” August 16. But, when asking “Would the eurozone be justified in ejecting Greece?” professor Pagoulatos seems to imply that staying with the euro is not in Greece’s hands, and that is wrong. 

The best thing that Greece could do is to announce that, if by any reason expelled from the eurozone, for instance because it has not been able to service its debt, that which was recently considered risk-free by European bank regulators, it will stick to the euro, and NOT pull a dirty quickie new drachma on anyone... something which by the way would cost Greece useless fortunes, because of its unfortunate current lack of sufficient credibility. If Montenegro can use the euro why can’t Greece?