Monday, February 13, 2012

What if Greece had to get a new currency?

by Chris Bowlby

BBC News

February 13, 2012

Although the immediate threat of Greece defaulting on its debt looks to have been averted, it still faces years of economic crisis as it struggles to bring down its debt. Support is growing within the country for a return to the drachma and some European leaders have said the euro could survive a Greek exit. So, Radio 4's Chris Bowlby asks, what would happen if Greece had to get a new currency?

The eurozone crisis is not just about political deals or high finance. It is also about confidence in the cash in people's pockets.

The euro was meant to symbolise a more united and stable continent for every eurozone citizen.

But if the single currency begins to fragment, if a country or countries reintroduce national currencies, everyone in the eurozone could be affected.

Haggling has continued over the terms of the latest Greek bailout, while political tension rises in Greece itself.

And as austerity bites deeper, few believe the overall crisis will be solved soon.

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