[symple_box] Ali Mhamedi is a senior associate at Infomineo, a business research company focusing on Africa and the Middle East. [/symple_box]
Casablanca, Morocco- It all started in 2012 when Greece was facing two options: Either to receive a Bail-out from the Euro-zone, especially from Europe’s economy heart Germany, or to leave the Euro-zone.
Back-then, and on the sidelines of windy negotiations between various EU head of states, Greece bent over the first option, which was a synonym of years to come of austerity measures. As a matter of fact, Greece had to accept all austerity measures shoehorned by its creditors, especially Germany.
[symple_box color=”white”] Greeks will have to choose again between AUSTERITY (YES vote) or NO AUSTERITY (No vote), with this latter very probably propelling a G-EXIT (Greek-Exit) from the Euro-zone. Will a G-Exit scenario see light? Only time will tell. [/symple_box]
For Greece and since the said austerity measures were enacted, spending was cut down to the bones, which literally propelled the funneling out of money from the said country, chocking the economy, and by extension, triggering an unparalleled increase in unemployment rate, followed by ongoing social tensions.
Greece accepted the austerity measures as it had, to some extent, the knife under the throat; There was no clear solution of how to save the economy and a Euro-zone exit could have lead to hyperinflation, a worse scenario.
Yet, following Emergency elections in early 2015, Greeks shoehorned their refusal to austerity measures by electing a radical left-wing party. End of June, the leader of this party took the bold decision to default on a $US 1,7 Billion payment of the International Monetary Fund (IMF), becoming in the meantime [Greece] the first developed country ever to default a payment to the IMF.
As a poker strategy to negotiate a better settlement with its creditors, the leader of the said party proposed to invite all Greek people to the negotiation table, with a referendum set to take place on the 5th of July.
On the referendum day, Greeks will have to choose again between AUSTERITY (YES vote) or NO AUSTERITY (No vote), with this latter vote very probably propelling a G-EXIT (Greek-Exit) from the Euro-zone.
Will a G-Exit scenario see light? Only time will tell.
[symple_box]Please Note that the views expressed in all opinions on The Moroccan Times are the authors’s own and do not reflect The Moroccan Times editorial policy.[/symple_box]