On Sunday, the Greeks, in a referendum, rejected the offer of a new set of austerity measures from the European Central Bank in exchange of bailout money to pay off the country’s debt. The response to the referendum has increased the chances of a Greek Exit from the Eurozone, which is making its leaders very nervous at this point. Already seen as a crucial point in the history of the Eurozone, the French President Francois Hollande said: “It’s not just the problem of Greece – it’s the future of the European Union” that is at stake.
The Greek debt crisis has put the idea of Eurozone, Europe’s 19 countries’ monetary union, under scrutiny. It was established in 1999 and Greece joined it in 2001. Since its founding, no country has left the Eurozone and as Greek banks will eventually run out of money, a Grexit is on the cards. By design, it is such that Greece’s instability to survive in the Eurozone puts both the country and the entire Eurozone in a precarious position. Watch the video below, by TestTube News, for a better understanding into how it functions.