May 21, 2019

“Eurozone will collapse” – Jack Straw

Mortgagee Sale: Greece - a great little doer-upper with some heritage restrictions on development.

Former British Foreign Secretary Jack Straw has predicted the collapse of the eurozone and urged the United Kingdom to consider the “alternatives” as the Greek debt crisis worsens.

Straw speaking inthe UK parliament as MP’s discussed the latest bailout of Greece, said the euro was facing a “slow death” and the 17-member eurozone “cannot last” in its current form.

Government Treasury Minister Mark Hoban said it was in the UK’s interest to “ensure the continuing stability” of the eurozone.

However, he insisted the UK would not be participating directly in any bailout in Greece and UK exposure to the Greek economy was “relatively small”.

That is fair enough considering the UK was on the verge of needing a bailout itself not so long ago.

The latest EU bailout of Greece has been delayed to get assurances form the rather shaky Greek government that further austerity measures are being put in place.

Without the cash injection, Greece will probably start defaulting on loan repaynments.

Outspoken conservative London Mayor Boris Johnson is among a growing number of UK politicians to call for this to be allowed to happen – and for Greece to leave the eurozone.

Then Greece can return to being an independent basket case with a particular dislike of Turkey.

The Greek government wants a similar rescue deal to the $110bn bailout it received last year but eurozone financial ministers have postponed the latest loan from the EU and IMF until further austerity measures are introduced and are awaiting the outcome of a vote by the Greek Parliament on Tuesday.

Newswarped thinks that for many of the fringe economies that joined the EU it was a bit like winning the lottery. They got cash injections and easy loans, but like many lottery winners they frittered the money away on unproductive pursuits trying to live a lifestyle that could not be sustained.