Generate text that refutes this claim: Leaving the Eurozone would be detrimental for Greece in the long-run.  Even if the proposition are correct in claiming defaulting and leaving the Eurozone would stimulate growth in the Greek economy, such benefits are transitory whereas the benefits of remaining in the Eurozone are permanent. [1] Having the Euro provides stability for the Greek economy – investors know that the currency will not collapse, making their invested capital worthless. The gravity of the outcomes of a Greek default cannot be known for sure, however some economists have even suggested that hyperinflation could occur – leading to disastrous consequences for Greece. [2] Moreover, in the long term, a single currency makes investment and transactions with other Eurozone members much more efficient and profitable. This is particularly important given that the vast majority of Greek trade is carried out with other European members. In light of these benefits, a short term cost that comes with the austerity measures enforced under the status quo, would be worthwhile in the long term.  [1] Barrell, Ray: “Eurozone crisis: what if… Greece leaves the single currency”, 14 May 2012, The Guardian,   [2] Ruparel, Raoul and Persson, Mats: “Better off Out? The short-term options for Greece inside and outside of the euro”, June 2012, Open Europe, 2012
conomic policy eurozone crisis finance international europe politics government
Even in the long-term, continued Eurozone membership for Greece is not sustainable. The size of their total debt % GDP ratio is such that even if Greece were to recover (eventually) with the current austerity measures, Greece would always be susceptible to yet another debt crisis in the event of a future global or European recession. Eurozone membership denies Greece fiscal and monetary policy freedom required to face economic shocks to prevent this from happening. We thus see that in the long-term growth is more sustainable for Greece without the Euro.