A major economic decision in a country usually involves devaluation of a currency; it might also mean withdraw from a broad monetary unit. However Greece is contemplating this happening all at the same time. Such a turn of events if it does happen would be quite unheard of for an economy. Especially an economy that is so entrenched into the global financial markets. Greece would have to rebuild its economy that is presently in shambles. This would happen after a sharp devaluation that would have delivered a severe confidence shock to the entire population. And there is a chance of undermining the banks and it may trigger likely defaults on debts to foreigners. The consequences of an exit from the EURO have spelt doom among policy makers that they refuse to talk about it. They reckon that it may be very tumultuous not just for Greece but for all of Europe. And even though the taboo of mentioning a euro exit has fallen away in recent months, going back to the drachma would likely be messy, with many steps having to be improvised overnight. Policy makers have clearly stated that a loan exit from the currency would not be possible. An exit would mean a complete one from the whole union.
According to Maria Fekter, Finance Minister of Australia, Leaving the European Union would also mean an end to billions of Euros left in areas like farm and development subsidies. There is also easy access to a large internal market.
“It’s impossible to leave the Euro zone, one can only leave the European Union,” she told reporters at a meeting with her counterparts in Brussels.
“After that, Greece would have to apply for re-accession and we would hold accession talks and look very closely whether Greece actually fulfils the accession requirements.”
These statements reflect the opinions of many other Europeans who are frustrated with Greece.