EUC affiliated faculty Kostas Kourtikakis was interviewed by the University of Illinois News Bureau for its "A Minute With" series. Kourtikakis discussed the Greek economic crisis with News Bureau social sciences editor Craig Chamberlain. This article originally appeared on the News Bureau website.
First of all, what has been the mood in Greece about these developments?
Some news reports point out that even if Greece was borrowing and spending irresponsibly before its debt troubles, it has implemented the required austerity measures in recent years, cutting back government spending and raising taxes. But it’s also now in a deep recession, with unemployment at 25 percent. What are its options for digging out of this economic hole?
The EU has been dealing with debt issues for more than five years, and earlier on every new crisis seemed to threaten the entire international financial system. Is that still the case? What’s the worst that can happen if Greece were to leave the eurozone or default on its debts?
More than a few commentators suggest that the euro itself is as much, if not more, to blame for these ongoing debt issues. Can the EU and the eurozone continue in their current form?
Editor’s note: To contact Kostas Kourtikakis, who is traveling in Europe until July 22, email email@example.com.