Euro Countries Weigh Options Regarding Greece

In the European Union, some of the regional bloc's major powers are tightening their resistance against Greece's attempts to leave the Eurozone, although not at any cost. European leaders from Paris, Berlin, and Brussels have spent their time since the last Greek political crisis building firewalls against the financial toxins that hurled Europe into the crises, and their stiff line also reflects their confidence that the eurozone would survive a Greek exit. Therefore, coinciding with the euro hitting a 9-year low against the dollar this past Monday and other external factors threatening the eurozone, the EU is preparing itself to make any hard decisions necessary to avoid falling into another significant depression.

Upcoming Greek elections are the leading cause of the current tension between Greece's relationship with the eurozone. The front runner, Alexis Tsipras, has vowed to repudiate parts of the nation’s debt, roll back the austerity measures required by Greece’s international creditors, and renegotiate deals with them that have given Greece access to billions in aid. Although Tsipras has stated that he desires to keep Greece in eurozone, his other economic goals would cost Greece’s creditors, and European taxpayers, tens of billions of dollars, particularly if financial markets become strained by uncertainty. As a response to the Tsipras threat, EU leaders have begun to debate whether or not the hardline stance against Greece abandoning the euro is the most cost-effective solution to another potential fiscal crisis within the bloc. 

Other European leaders, however, still deny any possibility of a Greek exit from the eurozone. Guy Verhofstadt, a former Belgian prime minister, called the idea of a Greek exit from the eurozone “nonsense,” not only because most Greeks do not want to leave the euro, but also because European taxpayers would lose billions of euros that Greece owes them. Officials in Brussels also have clearly deemed membership in the bloc as "irrevocable," and a Greek exit would also cause major political backlash against the European governments that have vowed over the years to retain Greece. 

In summary, the once unified stance against Greece's exit from the eurozone is beginning to waver as the threats of another financial crisis loom over European markets. The effect that a Greek exit would have over European taxpayers would cause immense changes in consumer spending tendencies, especially due to the increases in taxes that would be used to recover the lost funds. Therefore, those interested in European markets should particularly keep an eye on the upcoming Greek elections, as the outcome could dramatically change the financial environment of the continent.