The Role of Finance in Shaping the Global Sustainability Movement

Grexit
Name
Institution
Grexit
Introduction
Since the 2008 economic crisis, many countries have been experiencing some economic meltdown (Khan, 2015). Although some countries managed to rescue themselves from the situation, others still languish in difficulties of relying on debts in order to survive. Among such countries is Greece, one of the most severely indebted countries in the Eurozone. Recently, the inability of the country to meet its debt obligations has raised some concerns of whether the country will eventually exit from the Eurozone or not. Analysts believe that in case of Greece exiting from the Eurozone, this would have major implications to the financial markets not only in the country but to the entire Eurozone. Such consequences will affect the currency of the country and that of Eurozone, the economy of the country, and the regulation of the markets in the country (Khan, 2015). Besides, the situation will affect other countries in the Eurozone and beyond borders. Although the move might seemingly look recommendable, the overall impact of Greece exiting from the Eurozone will be an undesirable one. Therefore, it is better the country remain in the Eurozone and work with the others member countries in trying solve the problem to safeguard the stability of the region.
An Overview of the Grexit
Grexit is a word used to describe the potential exit of Greece from the Eurozone owing to its inability to meet its obligation of paying back its highly accumulated debts (Chrysoloras and Chrepa, 2015). Since the 2008 world economic recession, the Eurozone was one of the regions highly hit, in the world. Although some countries managed to curb the financial and economic problems caused by the recessions, others countries experienced difficulties forcing them to rely on external borrowing to sustain their economy. Greece happens to be among those countries in the world that severely suffered owing to the economic recession. Today, the economy of the country has substantially downsized by over 10% from its position in 2008, a situation, which analysts believe will continue until a lasting solution is found (Khan, 2015).
Today, Greece has an accumulation of over 313 billion euros in debts (Chrysoloras and Chrepa, 2015). This figure is raising some concerns of whether the country will manage to repay the loans, as they have already more than doubled the country’s GDP. According to Ruparel Raoul (2015), a senior analyst with the Open Europe Magazine, many of the creditors loaning Greece have started losing faith in the country’s ability to meet their debt obligations. Most of the creditors think that the country would be better off out of euro. Accordingly, such sentiments are what are championing for the ‘Gretix.’ It is believed that the chance of Gretix happening is increasing and currently, the probability is close to 50%. This is because some of the policies undertaken by the government and the Eurozone as a whole to curb the situation are failing and just worsening the situation. With the several bailout strategies undertaken by some countries in the Eurozone failing to help Greece out of the problem, the governments are becoming adamant to continue supporting Greece through further b...