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9 Jul 2015
What are the geostrategic implications of a Greek exit?
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that the geostrategic significance of a Greek exit is worrisome.
Key Quotes:
"It is most desirable that a NATO member is also part of an economic community. A strong, competitive economy is needed for numerous reasons, including security. While there is no formal mechanism to eject Greece from EMU, there is one from the EU."
"Lawyers have argued a Greek exit from EMU would at the same time be an exit from the EU. Greece would be such a weak state that it would turn to where it has to for support. Greece's ports are among the assets that foreign investors (including Russia and China) covet. Many Greeks seem to regard Germany as more dangerous than Russia. "
"Russia wants to build a pipeline that circumvents Ukraine. Going through Greece is appealing, though the EU is more interested in reducing the dependence on Russian energy sources. Merkel has recently noted Greece's strategic importance in stabilizing the Balkans. Greece is also an important buffer state between the Europe and northern Africa and the Middle East, from where refugees seek a haven. "
Key Quotes:
"It is most desirable that a NATO member is also part of an economic community. A strong, competitive economy is needed for numerous reasons, including security. While there is no formal mechanism to eject Greece from EMU, there is one from the EU."
"Lawyers have argued a Greek exit from EMU would at the same time be an exit from the EU. Greece would be such a weak state that it would turn to where it has to for support. Greece's ports are among the assets that foreign investors (including Russia and China) covet. Many Greeks seem to regard Germany as more dangerous than Russia. "
"Russia wants to build a pipeline that circumvents Ukraine. Going through Greece is appealing, though the EU is more interested in reducing the dependence on Russian energy sources. Merkel has recently noted Greece's strategic importance in stabilizing the Balkans. Greece is also an important buffer state between the Europe and northern Africa and the Middle East, from where refugees seek a haven. "