Greek Bank Says Euro Exit Would Have Dramatic Effect

 Greece's biggest bank says that if the country exits the euro currency bloc¹ the effect on the nation's populace would be dramatic.

 

As the country heads to a new round of parliamentary elections in mid-June, the National Bank of Greece said Tuesday that a eurozone exit "would lead to a significant drop in living standards for Greek citizens."

 

The country's top lender said that Greeks would lose more than half their income and the value of the reinstated drachma currency would fall 65 percent. In addition, it predicted that the Greek jobless rate would jump from 21 to 34 percent while inflation skyrockets from 2 to 30 percent.

A coalition² government of Greek socialists³ and conservatives agreed earlier this year to impose a sweeping⁴ austerity plan in exchange for billions of dollars in new rescue funds from its European neighbors and the International Monetary⁵ Fund. But the country's fractious political parties were unable to forge a new government after a splintered election earlier this month, leading to the new vote next month.

 

European leaders repeatedly have said they want Greece to remain in the 17-nation currency union. They also have said the Athens government must adhere to the austerity plan or it won't be handed any more rescue funds. Recent political surveys show the conservatives leading, with an anti-bailout party, the radical⁶ left Syriza party, trailing close behind.

 

One international finance expert, Andreas Hauskrecht of the Indiana University business school, said he sees Greece exiting the eurozone no matter how the election turns out.

 

"The likelihood is close to 100 percent, and it will happen in 2012 most likely. I wouldn't be surprised if it happens over the summer," said Hauskrecht.

 

He said that even if a new coalition government is formed that supports widespread wage and pension cuts and elimination⁷ of thousands of government jobs, it won't be enough to prevent a euro exit.

 

"The reasons are simple. Let's take the most optimistic way. They are able to form a government after the election June 17th. They are able to hold to their promises on the fiscal⁸ side and they still will default because the Greek economy is shrinking so quickly that the numbers that were the basis for the original plan to cut fiscal deficits⁹ are insufficient¹⁰. So basically, they are in a vicious circle and it's only a question of time until they will have to default. The less optimistic say they cannot build a stable government, which is much more likely, and then they will default already in July 2012," said Hauskrecht.

 

Hauskrecht said that despite public pledges of support for Greece from other eurozone nations, Germany and more economically stable countries have grown weary of handing the Athens government more assistance.

1 bloc   

n.集团；联盟

参考例句：

• A solid bloc of union members support the decision.工会会员团结起来支持该决定。
• There have been growing tensions within the trading bloc.贸易同盟国的关系越来越紧张。

2 coalition   

n.结合体，同盟，结合，联合

参考例句：

• The several parties formed a coalition.这几个政党组成了政治联盟。
• Coalition forces take great care to avoid civilian casualties.联盟军队竭尽全力避免造成平民伤亡。

3 socialists   

社会主义者( socialist的名词复数 )

参考例句：

• The socialists saw themselves as true heirs of the Enlightenment. 社会主义者认为自己是启蒙运动的真正继承者。
• The Socialists junked dogma when they came to office in 1982. 社会党人1982年上台执政后，就把其政治信条弃之不顾。

4 sweeping   

adj.范围广大的，一扫无遗的

参考例句：

• The citizens voted for sweeping reforms.公民投票支持全面的改革。
• Can you hear the wind sweeping through the branches?你能听到风掠过树枝的声音吗？

5 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

6 radical   

n.激进份子，原子团，根号；adj.根本的，激进的，彻底的

参考例句：

• The patient got a radical cure in the hospital.病人在医院得到了根治。
• She is radical in her demands.她的要求十分偏激。

7 elimination   

n.排除，消除，消灭

参考例句：

• Their elimination from the competition was a great surprise.他们在比赛中遭到淘汰是个很大的意外。
• I was eliminated from the 400 metres in the semi-finals.我在400米半决赛中被淘汰。

8 fiscal   

adj.财政的，会计的，国库的，国库岁入的

参考例句：

• The increase of taxation is an important fiscal policy.增税是一项重要的财政政策。
• The government has two basic strategies of fiscal policy available.政府有两个可行的财政政策基本战略。

9 deficits   

n.不足额( deficit的名词复数 )；赤字；亏空；亏损

参考例句：

• The Ministry of Finance consistently overestimated its budget deficits. 财政部一贯高估预算赤字。 来自《简明英汉词典》
• Many of the world's farmers are also incurring economic deficits. 世界上许多农民还在遭受经济上的亏损。 来自辞典例句

10 insufficient   

adj.(for，of)不足的，不够的

参考例句：

• There was insufficient evidence to convict him.没有足够证据给他定罪。
• In their day scientific knowledge was insufficient to settle the matter.在他们的时代，科学知识还不能足以解决这些问题。