Greece And Its Relationship With The Eurozone

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Greece and its relationship with the Eurozone Victor Kasik International Economics This paper will provide a brief history of Greece and reviews the modern day problems that may force Greece out of the Eurozone. Indeed, history is being made on a daily basis as the prospect of a Greek exit would steer both the nation and the Eurozone into uncharted territory. This is a cautionary tale about economic and political unification, the advantages and disadvantages of giving up sovereign rights to a common cause, and the impact of cultural differences in trying to solve mutual problems. Modern day Greece is a nation with 10.8 million people, and is the 15th largest economy in the 28 member European Union. As of 2013, the GDP of Greece was…show more content…
With the collapse of the junta the nation returned to its democratic roots and Greece became a Parliamentary Republic. In the years following WWII, Greece began to identify itself more as a Western European nation than as a Balkan state. The economic integration of the European states began in 1951 with the creation of the European Coal and Steel Community between Germany and France. This agreement helped to bury the hatchet between these two former enemies, and served as a blueprint going forward in lowering trade barriers, implementing common tariffs on imports from outside nations and increasing cooperation among European countries. These efforts resulted in the establishment of the European Economic Community in 1957. As old hostilities faded, Europe began to see itself more as a cohesive unit of interrelated economic and political systems and provided a united front against the economic power of the United States on one side, and the threat of communism on the other side. For example, France and Germany, once bitter enemies, made the decision to link their currencies in response to what they considered to be the opportunistic economic policies of the United States. By doing this, it hastened the collapse of the Bretton Woods agreement and allowed European countries to float their currencies. This also allowed countries to
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