Room For Debate: Is There Any Hope for Greece?

Introduction

Louisa Gouliamaki/Agence France-Presse — Getty Images City workers in Athens protesting against austerity plans on May 18.

Global markets slipped on Monday as worries rose about the euro zone’s fiscal stability. Meanwhile, Greece’s cabinet approved another package of spending cuts and asset sales in response to demands from euro zone partners — including Spain and Italy — that it move faster on austerity measures.

Skeptics are saying that Greece, facing loans of more than 150 percent of gross domestic product, will eventually have to restructure its debt — paying back less than face value.

What’s the answer for Greece? If staying in the euro zone means living with austerity plans that could lead to years of high unemployment and recession, would leaving the euro be a sound option?

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Topics: Economy, Europe, Greece

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Article source: http://feeds.nytimes.com/click.phdo?i=ba82737e90d1381b30ae172e2f9833c4