Eurozone: Individual Players or a Team?

There has been much debate about what the European Union should and should not do in order to solve its financial issues. Greece and Germany: Who should stay? Who should leave? Who should be expelled?

The intuitive reaction for most is to say "why don't they just kick Greece out of eurozone?" After analyzing the situation more closely, getting rid of Greece would only exasperate the problems of the EU. Why? Because if Greece goes back to using the Greek drachma, the currency of the Mediterranean country would be weak considering the financial problems faced by the nation currently. A Greek nation with weak currency and debt denominated in euros will be even less likely to pay off its loans. This will only hurt the eurozone more which would make the scenario of excluding Greece improbable.

On the other side of the spectrum is Germany, known for its strong banking and monetary policy and low deficits. When eurozone was created, Germany insisted that there's a clause stating that if a country found itself in financial trouble, it would be on its own - the "no-bailout clause". The Greek rescue plan went against this clause and the Germans are contributing $28 billion to help pay for the high deficit in Greece. Wouldn't it just be easier if Germany left? Granted, it would be better for Germany - the deutsche mark would be strong compared to the euro and interest rates would likely be lower. This, however, is not the full story. The eurozone would suffer by losing Germany. First, countries such as the Netherlands and Austria who are closely tied with Germany might leave as well. Second, the nations left would be considered as risky to invest in and interest rates to bring in money would be unbearable.

It seems that eurozone countries are faced with choosing the lesser of two evils. There is no sure route to prosperity. However, it is likely that all countries will remain part of the union as leaving is not simple and would have consequences for all. It is time for countries to show that they are team players; otherwise the collapse of the eurozone is imminent. Granted, some changes are needed, one being enforcement and strengthening budget deficit rules.