Leaving the euro tomorrow will do enormous damage to Greece.
If tourism can pay an entire country's imports bill, then Greece should start subsidising tourism as if it already had a devalued currency of its own. That is probably a violation of EU regulation but the Germans are inclined to have Greece expelled anyway. It will take time for complaints to be filed and processed and by then the Greeks will know how much foreign exchange tourism can earn for them.
http://www.ft.com/cms/s/0/76d064c6-5992-11e1-8d36-00144feabdc0.html
On Friday afternoon, Constantine Michalos, president of the Athens chamber of commerce, sat in his office – around the corner from where protesters were hurling chunks of marble at riot police – and contemplated what was once unthinkable: that Greece would default on its debt and then be forced into a messy exit from the euro.
"All hell would break loose," Mr Michalos said, sketching a society that would quickly run short of fuel, food, medicine and necessities. "You would have social upheaval."
http://www.ft.com/cms/s/0/76d064c6-5992-11e1-8d36-00144feabdc0.html
On Friday afternoon, Constantine Michalos, president of the Athens chamber of commerce, sat in his office – around the corner from where protesters were hurling chunks of marble at riot police – and contemplated what was once unthinkable: that Greece would default on its debt and then be forced into a messy exit from the euro.
"All hell would break loose," Mr Michalos said, sketching a society that would quickly run short of fuel, food, medicine and necessities. "You would have social upheaval."
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