How a Greek departure from the Euro Zone could be beneficial

By June 13, 2012

Greece (MNN) — No matter what happens as a result of the upcoming elections this Sunday, Greece will remain in major financial trouble. But does that mean the rest of the world — and even the missions world — will suffer as well?

Many report that Greece leaving the Euro Zone would be an economic homicide of the European Union. But Cornerstone University professor and Business Division Chair Dr. Brad Stamm has a different perspective: "What's bad for Greece might actually be good for the rest of the European Union."

Within the present situation, Greece is costing the EU millions. Economically-sound Germany, in particular, has been carrying the EU's struggling nations on its back. Getting rid of Greece could help shed some dead weight.

Stamm says of Greece, "You're hurting the Euro Zone. You're dragging down the overall income of the country. You've got incredibly high unemployment of over 20%. You've got interest rates of 30%. So for Europe as a whole, it might be a good thing."

If Sunday's vote results in a win by a party opposed to the austerities of a bail-out, Stamm says, the rest of the Euro Zone will likely be okay. There is concern that other nations like Italy or Spain will follow in Greece's footsteps if they pull away from the EU, but Stamm says there seems to be an unspoken "wait and see" policy in place among other struggling countries.

"If this turns out to be good for Greece, others will follow. If this turns out to be bad for Greece, they're going to do what they can to stay in the European Union, to continue using the Euro," says Stamm.

Although, even the depreciation of the Euro could be a good thing for struggling missionaries.

"The whole issue has caused the Euro to decline," says Stamm. "Most people expect it could go to $1.19, maybe even $1.15 by the first of next year. In that sense, European goods become cheaper. Ministries might actually be able to operate at a lower expense."

A lot of good could potentially come for outsiders from a Greek withdrawal. Of course, for ministries who remain in Greece like AMG International and Operation Mobilization, no outcome will be pain-free.

"Unless you're in Greece itself, I don't think this is going to negatively affect those other countries. If you're in Greece," notes Stamm, "then I would expect the amount of civil unrest to increase. I would expect there to be large fluctuations in currency. And we can expect continued high unemployment and interest rates of 30% or more, which makes it virtually impossible to borrow for anything."

Whatever is to come, the greatest need is for prayer. Pray for those struggling in Greece. Pray for wise international decisions. And pray that through all of this, people would come to see that neither money nor man are worth worshiping, but only the Living God.

Leave a Reply