There is no question that Greece is tangled economically and politically in Europe. This was by design — the adoption of the euro was intended to be permanent, as was membership in the European Union (EU).* These entanglements are being tested by the ongoing crisis regarding Greece, its debt, and its ability to continue to use the euro as its currency. Though much has been — and will continue to be — written about this situation, we can reduce the problem to three basic issues.
- Will Greece default on its debt?
- Should Greece default, is the financial system at risk?
- Can Greece stay in the Eurozone? Does it matter?