Greece May Withdraw From Euro Zone &Nbsp; EU Holds Emergency Meeting To Discuss

The current situation in Greece is very important to the euro area, and the Luxemburg meeting is held in secret.

As the German finance minister Schauble went to attend the meeting, the media learned about the situation.

Schauble believes that Greece must be prevented from leaving the eurozone anyway.

A document from the German Ministry of Finance warned that if Greece uses its own currency, its exchange rate for the euro will depreciate sharply. It is foreseeable that the Greek currency will lose 50% and Greek bonds will also increase sharply.

The Ministry of Finance estimates that after the devaluation of Greek currency, its national debt will reach 200% of GNP.

In such a case, it is impossible to restructure debts. In other words, Greece will be completely bankrupt at this time.

German public opinion believes that if Greece withdraws from the euro, it will have a contagion effect on euro member states, and more member states will withdraw in the future, which is a major blow to the credibility of the euro.

At present, the financial market has heard the news that the interest rate of Greek bonds has risen sharply to 25%, that is to say, Greek bonds are no longer willing to be bought.

With the withdrawal of Greece from the euro area, the European Central Bank will also suffer huge losses. The ECB has bought a lot of Greek government bonds in the past time. The total number of Greek bonds is no less than 40 billion euros.

Euro union members and the International Monetary Fund provided 110 billion euros of assistance to Greece, half of which have arrived.

If Greece goes bankrupt, its debts will all be pferred to the taxpayers of the euro member countries.