Greek EU crisis will hurt us all; VOICE OF THE.
IT should be as unthinkable for Greece to leave the euro as for Texas to ditch the dollar.
And if Greece does, it will expose the fundamental design fault at the heart of the European dream.
Like the euro, the dollar is a single currency which can be spent in all 50 of the US's self-governing member states.
But America's economy is centrally controlled from Washington. And many argue that is the only way a single currency can work. That was the original plan for the EU. Full political and monetary union to create a United States of Europe.
Britain scuppered any hope of political union, but Germany and France pressed on with the euro anyway.
Laughing Some EU member states managed their economies better than others.
Italy, Portugal and Spain have struggled. But Greece took financial mismanagement to new heights of incompetence to become the basket case it is today.
All this delights Eurosceptic Tories who love seeing the EU in crisis.
But if Greece crashes out of the euro this week they will be laughing on the other side of their faces.
For Greece it would be a disaster.
A return to the drachma would allow it to devalue its currency to make exports cheaper.
But Greece doesn't export much anyway, and dearer imports would push inflation to 35 per cent, according to the IMF.
Banks would collapse. A humanitarian catastrophe could follow.
It would be a disaster for Europe, too. Losing a Eurozone member would wreck international confidence in the currency.
Europe - including Britain - would plunge back into recession.
The euro may have been misconceived, but there's no going back now.
So it is essential that Greek PM Alexis Tsipras and Eurozone leaders stop their ridiculous posturing and reach a compromise.
The alternative is too awful to contemplate.
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|Title Annotation:||Editorial; Opinion; Leading articles|
|Publication:||The People (London, England)|
|Date:||Jun 21, 2015|
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