Greek political leaders and analystappear ambivalent this summer over the issuance of eurobonds as aneffective way to tackle the Greek and European sovereign debtcrisis, noting that certain factors, such as interest rates, coulddetermine whether they would resolve the crisis or providebreathing space. As the Greek crisis has spread fears that other countries couldstruggle to sell their bonds without support from Brussels, thelatest EU summit examined the issue a few days ago. At its aftermath, Greek socialist PASOK party leader and formerFinance Minister Evangelos Venizelos characteristically told Greekmedia that the "interest rate is a key in determining whetherthey would be more beneficial" than the bailout deals Greecehas signed since 2010 with European partners and InternationalMonetary Fund. Greece has spoken out in favor of the issuance of eurobonds fromlate 2009, when the Greek debt crisis that threatens the countrywith a disorderly default that could destabilize the entire eurozone area started. But, with the terms of the issuance of such bonds still unspecifiedand Germany leading opposition to the issuance of debt by all 17members of the European common currency bloc due to fears that"healthy" economies could be drawn deeper into thecrisis, scepticism over its possible positive and negative effectson Greece and internationally runs deep. "A truly united Europe that collectively borrows anddistributes funds according to the need will reduce the borrowingcosts to the economies in need, such as Greece, and the risks forinternational investors..This is the way to leave behind fiscalproblems that challenge its structure and for euro tosurvive," argued in a recent article Periklis Gogas, Professorof Macroeconomics at the University of Thrace. But, even proponents of the eurobonds acknowledge that the bondsthemselves cannot outright resolve the Greek and European debtcrisis, if political leaders will not address comprehensively thestructural weaknesses of national economies and the euro zone. In the best case in the short-term future, eurobonds will providesome breathing space rather than unlock the crisis, experts such asTheodore Lianos, Professor of Political Economy at the AthensUniversity of Economics and Business, stated. It is difficult to estimate the effects of the issuance ofeurobonds on Greece, if there are no data on the final terms oftheir issuance, such as interest rates and time limits, heexplained over the past weekend. If, for instance, there is a condition that the total sovereigndebt of eurozone member states can not surpass the 60 percent oftheir GDP, then the eurobonds issuance would essentially amount toa reinstatement of the pressure for fiscal discipline that is metwith strong reactions by Greek citizens and political leaders,since the harsh austerity recipe has fuelled deep recession overthe past two years. "In the case of a redistribution of the debt burden, theEurobonds issuance could temporally provide some relieve to Greekeconomy.. But it will not bring growth. Growth demands deepstructural reforms that only we can enforce," Lianos stressed. The Greek Professor seems to share the wide-spread scepticismacross Europe whether the collectivizing of debt will keep thepressure on ailing European economies to put their public financesin order. Depending on the final formula European leaders will adopt, theeurobonds could cut borrowing costs for most members of the17-nation monetary union, easing immediate budgetary crises forGreece and other economies, along fears over a catastrophic defaultwithin the euro zone. In the worst case scenario on the other hand, a wrong sort ofeurobonds could increase the debt load and damage the creditstanding of strong economies as well, increasing anxiety over theeconomic future of more European economies and the euro, someexperts warn. Anyway, the eurobonds themselves without a comprehensive strategy,will not solve the Greek or wider European debt crisis and thestructural flaws of national economies and the euro zone,proponents and sceptics agree. The e-commerce company in China offers quality products such as China Cylindrical Roller Bearings , Needle Roller Bearing, and more. For more , please visit Single Row Tapered Roller Bearings today!
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