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Home > Why we should care what happens in Greece

Why we should care what happens in Greece

7th July 2015 | Published by Henry

Flag_of_Greece.svg_-250x167The debt crisis in Greece has been ongoing for some time now and if you are not planning a Greek holiday this summer, you may be wondering what impact the situation will have on life here in Britain.

Effect on other countries within Europe
If Greece does leave the Eurozone, it will undoubtedly have a knock on effect on politics in other countries within Europe. Anti-austerity parties in Spain are likely to be boosted, German Chancellor, Angela Merkel, is likely to face criticism from many voters unhappy with Greece being ‘let off the hook.’

UKIP here in the UK will find their position strengthened, as will France’s National Front, both of which argue that full integration in Europe cannot work successfully.

Immigration
A Greek exit from Europe could also affect immigration into the UK and other European countries because Greece has, so far, absorbed large numbers of migrants from North Africa and the Middle East. Should Greece leave, its government has already said that it would be unwilling to continue to co-operate with other countries on the immigration issue. Panos Kammenos, Greece Defence Minister, said that his country would ‘flood’ Europe with immigrants if it were forced to pull out of the Eurozone.

Others might follow
If Greece is allowed to leave Europe, other countries that have been bailed out in the past, like Ireland and Portugal, could be forced to question their future.

European markets
Global stock markets will react badly if Greece leaves the Eurozone. Many European countries, as well as the European Central Bank, stand to lose billions.

Potential shift in balance of power between US and Russia Finally, the US appears to be concerned that an exit could see Greece moving closer to Russia, as it seeks aid from the Kremlin. Former German ambassador to Washington, Wolfgang Ischinger, said that Moscow will interpret Greece’s withdrawal as evidence that the Eurozone is in decline.

Category: Money
This post was written by Henry
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