The EU as a whole would be Japan's 3rd largest trading partner

While the Greek economy appears to be growing, unemployment still stands at above 23pc and IMF
analysts believe that its GDP will grow by less than 1pc per year in the long-term, a low rate which will
prevent it from reducing the crushing debt burden.

Meanwhile the IMF’s managing director Christine Lagarde called on Greece to beef up its ability to
collect and report economic data, to give the government, investors and other nations a clearer idea of
the country’s performance.

Trump is further expected to withhold consent for the IMF to provide Greece further loans to pay off its
existing debts, which could precipitate of credit crisis. Thus, unlike the Obama administration, which
helped averted the EU’s demise in 2010, the new U.S. government apparently plans to press for the
precise opposite: propelling the EU towards its total collapse.

If a single Eurozone economy were to default, this could eventually demolish the shared currency and
the EU project itself.

Bashing NATO and the European Union, and alienating Germany, is a plan for tearing apart US relations
with the EU — for weakening the agreements that underpin America’s status as the world’s sole
superpower and that maintain peace on the European continent.

“What Trump proposes is [American] geopolitical suicide,”

Its political function is to bind Western countries together, to align their interests and prevent trade
wars that would slow down growth globally.

Trump wants the EU to crumble

The EU was formed, partially, to beat the United States on trade, OK?” he asked rhetorically. “I don’t
really care whether it’s separate or together.”Here you see Trump’s basic mindset at work — the world
is a series of zero-sum trade-offs. If the EU serves European countries well, economically, then it must
be bad for the United States. Hence he won’t try, as President Obama has, to use US influence to
prevent more countries from leaving the European Union.

Debt relief

But because debt relief is not politically palatable, Soros believes the current situation is comparable
with that which followed World War I. At the time, France contributed to the rise of Adolf Hitler with its
insistence on astronomical reparations from Germany. "The Golden Dawn in Greece is a similar
development," Soros said. The trend, he added, is clear: Toward populism and extremism.

Introduction of new currency – drachma

Were Greece to introduce a new -- and devalued -- currency, it seems unlikely that Athens would be
able to service or pay down those debts. The result would be that creditors, Germany first and foremost,
would be forced to write down their claims.
Grexit

“The sacrifices of Greek people should not go to waste. After seven difficult years, Greece should finally
emerge from the crisis and not get into a new vortex. “In this effort, we will need the support of our
partners. A support, which will not only benefit Greece, but will also contribute to strengthening
European cohesion at a difficult time for the European Union.”

“Grexit is not our agenda, it is the agenda of those who want the breakup of Europe,” said Sia
Anagnostopoulou, a leading Syriza MP and former alternate European affairs minister.

This proposal would impose excessive hardship on the Greek people, as the short-term effects would be
a significant consumption and wealth reduction for the Greek population. This may cause civil unrest in
Greece and harm the reputation of the eurozone. Additionally, it could cause Greece to align more with
non-EU states.

National Bank of Greece: The prospect of Greece leaving the euro and dealing with a devalued drachma
prompted many people to start withdrawing their euros from the country's banks. According to the
announcement, per capita income would fall by 55%, the new national currency would depreciate by
65% vis-à-vis the euro, and the recession would deepen to 22%. Furthermore, unemployment would rise
from its current 22% to 34% of the work force, and inflation, which was then at 2%, would soar to 30%.

a new drachma would lose half or more of its value relative to the euro. This would drive up inflation,
and reduce the purchasing power of the average Greek. At the same time, the country's economic
output would drop, putting more people out of work where one in five is already unemployed. The
prices of imported goods would skyrocket, putting them out of reach for many.

"A Greek exit from the euro would be very difficult for the world economy and potentially very
damaging for the European economy."

Europe in 2010 accounted for 25 percent of world trade, according to Deutsche Bank. Economic
depression within the European economy would ripple worldwide and slow global growth.

Grexit would be a historic mistake that would damage the credibility of the entire European Union.

Austerity measures

There were two causes. The first was that Greek democracy, like many democracies, demands benefits
for the people from the state, and politicians wishing to be elected must grant these benefits. There is
accordingly an inherent pressure on the system to spend excessively. The second cause relates to
Germany's status as the world's second-largest exporter. About 40 percent of German gross domestic
product comes from exports, much of them to the European Union. For all their discussion of fiscal
prudence and care, the Germans have an interest in facilitating consumption and demand for their
exports across Europe. Without these exports, Germany would plunge into depression.

Fiscal Union

"More Europe" say those who believe that problems were caused by an inadequate integration process
that allowed policy mistakes by incompetent national governments. a strict enforcement of existing
euro area fiscal rules: Budget deficits limited to 3 percent of GDP and the gross public debt to
60 percent of GDP. About half of the euro area members are now falling far short of these
criteria.