Greece: A mess with consequences
The country is both defiant and desperate; EU leaders wonder if the small economy is worth saving.
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
Cambridge
AS Greece teeters on the edge of an abyss, the world collectively holds its breath. If Greece is expelled from the eurozone after its "no" vote on needed reforms, the ripple effect will reach far and beyond. The crisis comes at an especially bad time for a wobbly global economy. If there is a way forward, the European Union would have to ignore the "no" vote in the Sunday referendum.
The denouement may be reached this week, but the crisis has been a long-time coming. Greece has had a dysfunctional political economy for years and should not have joined the euro with its obligations for controlled deficits and debt. After it joined, borrowing was cheap and the government borrowed rather than cut generous spending or increase taxes on a population that did not like to pay their legal obligations.
Share with us your feedback on BT's products and services
TRENDING NOW
Ministry of Home Affairs Permanent Secretary Pang Kin Keong to retire
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
