Arcadia Italy
Alumni Comment on Greek Debt Crisis
Date
July 6, 2015
Each semester, the Arcadia Rome Center's Prof. Ben Scribner teaches Political Economy with a focus on the Southern European Debt Crisis, as does Prof. Bianca Ananiadis of the Arcadia Athens Center. Both courses meet mid-semester in a European city (Rome, Athens, Barcelona and, this year possibly Brussels) to listen to parliamentarians, observe life on the street and in social centers and hold symposia with economists, journalists, politicians to better understand the crisis and its effects. Ben reached out to his former students from the past several semesters to see if they'd been following recent events in Greece. What follows is his blog post and their comments.
By Prof. Ben Scribner
Greece's debt crisis has again hit the headlines, but the way the media cycle works few have heard much about the back-story that has led to this dramatic point in Europe's history. At Arcadia's centers in Athens, Greece and in Rome, Italy, Dr. Ananiadis and I have engaged our students with an academic approach to the events unfolding before our eyes in our course on the Political Economy of the EU with a look at deeper causes and theoretical issues. An economic crisis is not a good thing but it does create unparalleled learning opportunities as paradigms are questioned and economics as a discipline is put to the test.
When it became apparent that things were coming to a head this summer I wrote our students to see if they were following things as closely as we are. Here are a few of their responses:
Meron Scire, Arcadia in Rome, Spring 2014
It is really hard to say what will happen next. Letting Greece exit the eurozone is risky for all the eurozone members. Greece's exit would have an impact on the EU economy and may have a greater impact on already crisis-hit countries like Spain and Portugal. The short-term effect of leaving the euro would be catastrophic for the Greek economy, but in the long term Greece would be better off outside a currency union it should never have joined in the first place. The return to the drachma would give Greece back its economic sovereignity. And it's time that the eurozone changes the current system which ties all the member states to one currency without a unified fiscal policy."
Fabrizio Iannoni, Arcadia in Rome, Fall 2013
Of course I'm following (with some preoccupation) the situation in Greece. Basically I think that an exit from the Eurozone would be a disaster, and a deal needs to be made but the compromise will require sacrifices both for Greece and for its creditors. They have to understand that Greece is not able to fully repay its debts considering the deadlines given by Europe: it is physically/technically impossible. Without an effective and serious strategy, the loans provided by the IMF to Greece only serve to prolong the situation of instability, as if you try to delay the death of a seriously ill person, without solving the problem at its root. We'll see, crossing fingers!!!
Samantha Service, Arcadia in Rome, Spring 2015
I think the EU and Greece will make a deal, but that Greece will lose a lot from it (though less than if they left the euro completely). I don't think the EU or Greece will let a Greek exit from the Euro happen just because of the impact that it would have on other European economies.
Marco Ferrara, Arcadia in Rome, Fall 2014
[Greek Prime Minister] Tsipras cannot continue his strong-arm tactics with the EU for too long. I believe in the end some deal will be made which will put Greece in a position of disadvantage. I am really curious to see what will happen in the next few days and how the situation will unravel later.