sure, but tourism will not remake Greece. Even before it joined the European union it could have never survived via tourism, only. Should Greece exit the EU or even just the Euro then Greece's shipbuilding and various other industries will be vitally dependent on its European neighbors and Greeks should be fully aware that they will reap what they sow now. As I said time and again, the choice is theirs but the repercussions of their choices will be strongly felt throughout each aspect of their economy for decades to come. And of course, forget sipping Margaritas and driving Benzes. Its gonna be down 5-6 notches on the living standard scale. I hope they really know where they are heading squeezed in between an arch nemesis and a collective bargaining power whom they abused, lied to, and cheated for years.
A cheap currency will help their export market as well. Greeks deal better with inflation - having lived with it for so long (one of the reasons they have such a huge underground economy and barter system) than they do with austerity. Regardless, it's the only way out now minus a massive culture change (which won't happen).
the only way out? Massive inflation, no change in attitudes, exporting what aside tourism? Feta cheese is not quite the high priced product, people don't eat twice as much Feta cheese in the rest of the world just because it drops 50% in price and I think its blatantly apparent that the world won't need another single cargo ship for years to come. Either you are ridiculously naive and almost scarily optimistic or all the country specialists, economists, and bankers at the ECB had it horribly wrong when they put together the package. I am absolutely convinced that it is you who is erring on the naive side. I laud your optimism, though. I wish you an enjoyable holiday once you can again afford to vacation there (sounds almost as if you wish the Greeks to go down the road of bankruptcy). Apparently you are not European and do not need to fear for your life in the land of savages.
Savages? That German superiority complex is beginning to assert itself again, isn't it? The Greeks can't pay their debt unless they end corruption, change their working culture and reverse 100s of years of attitude. The odds of that happening are slightly better than you finding a coherent economics argument in the dark with two hands and a flashlight. Therefore, the only way out for them is to leave the EMU.
From February 11th Greek government bonds no longer can be used as collateral for ECB loans. This was a communication from the ECB and bad news for Greece. Reduce debts and continue restructuring is the only but painful way to go.
Back a snake to the corner and wonder why you get bit! Sure, you can crush it with your boot, but that is little comfort as you lay there in agony afterwards. Or the samurai version: Always leave a man an escape unless you wish to learn how hard he can fight.
then fucking rid "yourself" of corruption, clean house, change your working culture for Christ's Sake. Superiority? No, I am fed up and millions of Europeans are fed up by a country and its people who express a gross disrespect and disregard for the basic principle of privileges AND RESPONSIBILITIES. How hard is this to really comprehend? Which part do you partout not want to understand? And even if they leave that does not mean they rid themselves of debt and any and all responsibilities. Just leaving the EMU adds to the problems rather than reduces them.
lol the ECB is the snake now? Whole crap, you are for sure not a European. Maybe that is how we smirk as bystanders at the so lauded "American way of life", the same life that suffers from an outdated health care system, food stamps for the masses, almost non-existent public transportation, and the fact that more than 60% Americans would have to borrow money for a $500 auto repair because they do not possess sufficient savings. (just an example, not claimed you are American). Difference between us is that I shut about it because it does not concern me. Maybe you could tone down your rhetoric a bit, I am willing to bet you would go all nuts if you saw your nation's flag burned on the streets by a nation you supported and helped build up from 50% year old standards into a modern European economy and infrastructure.
Actually, if they leave and default, it absolutely means they rid themselves of the external debt. The fact that you refer to a whole nation of people as savages speaks to your prejudice.