When Tsipras was elected as Prime Minister of Greece on January 25, 2015 it was because he promised Electors that he would reorganise the Economy of Greece and that he would demand a substantial Debt write-off from Eurozone Creditors !
It was quite evident that the internal Greek economy needed to be completely restructured but that at the same time Greece could not repay its debts !
Eurozone Creditors knew and feared this before the Election but they simply hoped that the Extremist Left would not win the Election !
Since then there have been countless meetings, lead by Angela Merkel, but they have been aimed at ensuring that Greece will undertake reorganisation measures ! Never has there been a promise to reduce or write-off part of the Greek Debts !
A possible "Grexit" became more certain as time passed with the consequence that there has been a run on all Greek banks by customers who have withdrawn their EUROS to hide them wherever possible !
EUROZONE creditors did not want to take a loss even though their Debtor was "Bankrupt" ! That could upset their Electors and could also damage the EURO ! The probability now is that Greece will decide to never repay the loans !
The possibility of a moratorium by the EUROZONE, of capital repayments coupled with a cancellation of interest during 10, 15 or 20 years was never offered ! At the end of such a period of time "capital repayments" would be easier for Greece because the EURO will surely depreciate !
To become competitive Greece cannot afford to stay in the EUROZONE ! It must depreciate all its internal and external liabilities (just like Russia and other countries have done over the years) and then adopt the former Drachme ! Cheaper prices will then encourage Tourists to return and visit Greece !
The sooner this happens, the better it will be for Greece ! Is there a better alternative solution ? One must, however, hope that Greece will decide to stay in the EU !
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