15:50 GMT21 February 2020
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    Greece's Gordian Knot: Syriza Tackles Austerity (404)

    Greece’s exit from the Eurozone will have disastrous consequences for all EU member states, Belgian politician and Member of the European Parliament Philippe Lamberts said.

    BRUSSELS (Sputnik) — The possibility of Grexit has primarily political, not financial origins, the lawmaker stressed, adding that speculation about Greece’s exit from the euro area is "a signal of the European mistrust."

    "[Grexit] would be a catastrophic failure for the European Union," Lamberts said Sunday in an interview with the Belgian Bruxelles2 news portal, adding that EU member states’ financial burden would increase significantly should Greece refuse to meet its foreign debt obligations.

    Grexit is result of "European encouragement," and it demonstrates all the parameters of the political crisis in Europe, Lamberts said.

    According to Lamberts, Greece’s creditors should agree to the restructuring of Greek debt to avoid the "catastrophic" scenario of losing a Eurozone member.

    On Sunday, over 60 percent of Greek voters rejected the new bailout terms proposed by Greece’s international lenders and slammed by the Greek leftist government.

    Greece which was hit by the devastating 2009 economic crisis, established a multibillion-dollar debt by accepting bailouts from European and international creditors. Negotiations broke down, and Greece’s latest bailout program, which expired on Tuesday, was not extended.

    Greece's overall debt to the European Central Bank, the International Monetary Fund and some eurozone nations stands at about $270 billion.

    Greece's Gordian Knot: Syriza Tackles Austerity (404)


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