Eurozone End-Game Begins with Greece

Anglo-Greek economist Costas Lapavitsis
(School of Oriental and African Studies at the University of
London) writes in the Guardian (July 17) that Greece has no option
other than to default and leave the Eurozone, which will lead to
the Eurozone’s collapse. “It is now a fair guess that the
European Monetary Union (or the Eurozone) has crossed the Rubicon
and is heading towards a breakup or collapse,” wrote Lapavitsis.
“Disintegration is likely to take a turn for the worse in
2013…”
He writes that, while the austerity must stop and growth
policies, bank nationalizations, and writing-off of the debt are
the only solutions, this is “unthinkable” with the current
political leaders and prevailing neo-liberal polices.
With the current Greek government committed to the bailout
and memorandum with the Troika, the Greek economy will contract
by at least 7% to 9% in 2012. “But,” he concludes, “Greece is
unlikely to attempt suicide: at some point it will default on its
debts and exit the EMU. There will then be a genuinely new
government, perhaps formed by the left, which will navigate the
chaos and guide the rebuilding of economy and society. Once
Greece has made its move, the unravelling of the EMU will
probably start in full earnest.”