Greece will eventually be forced to leave the eurozone and switch to a new currency, former Federal Reserve chairman Alan Greenspan told the BBC.
“I don’t see that it helps them to be in the Euro and I certainly don’t see that it helps the rest of the eurozone,” he said in a radio interview. “I think it’s just a matter of time before everyone recognizes that parting is the best strategy.”
The former official added that he doesn’t believe anyone would be willing to lend Greece the money to avoid an exit.
Greece’s newly-elected prime minister, Alexis Tsipras, won his job promising that he would renegotiate the terms of his country’s debt with the powers that be in Brussels, the financial center of the eurozone, and Germany, the eurozone’s largest economy.
For its part, Germany has remained steadfast in its refusal to loosen the terms of a 240 billion Euro bailout given to Greece in 2013.
The impact of a “Grexit” on the global economy is unclear, though many economists believe it would badly rupture the Eurozone.