First Euro Zone Country Gets Ready to Exit the Euro

US politics has been known as for its polarized politics. US politics has been revolving around democrats and Liberals from many years. It seems Greece is walking the same path. For the first time since 1945 elections in this financial bruised country has become battle between two parties. Greece economy has running towards the great Greek tragedy rapidly. The bruised country just registered the highest unemployment rate (record 21.7%) in the history. More serious concern is 54% unemployment rate in youth. Greece is sitting on face of erupted volcano of unemployment. European debt crisis is paying heavy toll on Greece. The parties that support the European Union and the austerity measures—and the parties that traditionally held power for over 60 years—only garnered 34% of the vote. Alarming sign is extreme right wing-left wing parties which are hardcore opposition of European Union and austerity measures has distributed remaining seats among themselves. These parties have totally different ideologies. But there is strong possibility that they will come together to form the. Coalition government. There is no prize for guessing that their common minimum program will be to reverse back austerity measures. Greek law states that the minority party with the most votes must attempt to form a coalition government in order to run the country. Now it has become crystal clear that party which was favoring Eurozone and austerity measures could not form the government in current circumstances. But the problem is those party values and ideologies are opposites like north polar and south polar. If they failed to form a coalition government then there is provision in Greek Constitution that there will be re –election. If both parties can not form government there is always option of re-elections in the country. Due to current political instability in Greece European Union has warned the nation that if Greece doesn’t apply austerity measures it’s difficult for them to get bail out money to restore financial stability in the country. If Greece doesn’t get the bailout money it could have declared their bankruptcy and will forced to leave European Union. This situation is further complicated by the fact that certain interest payments on Greek bonds are due this week. Now the million dollar question is can Greece be able to pay them? If the country couldn’t pay back it will become a defaulted nation. It could lead to various disastrous chain incidents. It has been observed that Apart from Germany other European countries are not happy with the austerity measures. If Greece leaves European Union there is possibility that other countries like France, Spain, Italy and Ireland which are badly hit by European debt crisis can make their exit from European Union. But experts think that even Greece make it’s exit from EU other countries stand united under the banner of European Union as they know that the last few years Greece will be unable to pay its massive debt. Also read articles on sovereign debt crises of European