Wealthy European countries come out of the first euro-zone
Financial analysts discuss the possible consequences of default in Greece and out of the country of the eurozone. According to some reports, the Greek government may declare a state of bankruptcy in September of this year. Such developments will result in rejection of international lenders to allocate a new loan to Athens because of poor pace of reforms.
But Greece is not the only country that can come out of the eurozone in the near future. The leader of the Finnish political party Finns Timo Soin said in August that Finland should withdraw from the monetary union, so as not to include poor countries. The popularity of this party is growing rapidly in recent years.
Mr. Soin said that the eurozone in its current form is doomed to financial disaster. The politician sees three out of the situation. First, some countries in the South of Europe, including Greece, may immediately leave the euro zone. In this case, the currency union will only be economically strong states. Secondly, the countries of Northern Europe, including Finland, may leave the euro zone, not to include the poor state.
The third way is the least acceptable in terms of Timo Soin. It is about creating a full-fledged federal state on the basis of the EU, with a total budget, currency and political leadership.
It should be noted that some British politicians in favor of the deepening economic and political integration in Europe. Proponents of integration argue that the creation of a full-fledged financial alliance will enable the region to get out of debt crisis that will benefit the British economy.
Countries that are hardest hit by the debt crisis, are indeed in the South of Europe. These include Greece, Spain, Portugal and Italy. Ireland, which has also received international financial support is in the Northern part of Europe. However, an attempt to define the boundaries of the euro area based on geography is unlikely to be successful, as the output of any country of the currency union will cause severe panic among investors.
The consequences of this panic will be devastating to the global financial system, so rich countries of Europe remain hostage situation. Probably, Germany, Finland and other wealthy countries will support the Greek government as long as the power in this country do not come politicians who support a return to the drachma.