Poll: What’s the Best Solution to the Greek Sovereign Debt Crisis?
What’s the best solution to the Greek sovereign debt crisis?
When we posed that question to readers of CFA Institute Financial NewsBrief, the option that drew the highest proportion of votes (32%) from our 684 respondents is that Greece should Grexit, or exit the eurozone. Interestingly, the second most popular option — that Greece should formally declare default (25%) — is also a path to the Grexit. Only 17% voted for continuing with the bailout and austerity measures, the medicine applied by the European Central Bank (ECB), the European Commission, and the International Monetary Fund (IMF) since 2009. There is skepticism about whether more of the same can cure Greece’s debt problems.
But unlike our respondents, decision makers do not seem to support the Grexit. The leftist party Syriza, which is leading in the polls before the upcoming parliamentary elections on 25 January, is against austerity, which is blamed for unemployment topping 25%, but does not favor the Grexit.
Economists, unsurprisingly, are divided. Some argue that Greece staying in the eurozone is worse than Grexit; others say that Grexit could happen by accident. In Greece’s story of anti-austerity politics and unsustainable debt, the only certainty is that all options involve risks and reforms.
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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.