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Alan Greenspan: Greek Exit From Eurozone Is Inevitable

"It's just a matter of time before everyone recognizes that parting is the best strategy," the former Fed chair told the BBC.

Last updated on July 3, 2018, at 1:07 p.m. ET

Posted on February 8, 2015, at 2:52 p.m. ET

Spencer Platt / Getty Images

Alan Greenspan, the former chair of the U.S. Federal Reserve, told the BBC on Sunday that it is "just matter of time" before Greece leaves the eurozone because of its struggling economy.

Greenspan, who led the U.S. central bank from 1987 to 2006, said he's skeptical the new anti-austerity government of Prime Minister Alexis Tsipras will be able to renegotiate the terms of its bailout with European creditors because "all the cards are being held by the members of eurozone."

"I don't think it will be resolved without Greece leaving the eurozone," Greenspan said.

"I believe [Greece] will eventually leave. I don't think it helps them or the rest of the eurozone — it's just a matter of time before everyone recognizes that parting is the best strategy.

"The problem is that there there is no way that I can conceive of the euro of continuing, unless and until all of the members of eurozone become politically integrated — actually even just fiscally integrated won't do it."

Listen to Greenspan's BBC interview here:

Greenspan's interview aired as Prime Minister Tsipras outlined his plans in an address to the parliament in Athens.

ARIS MESSINIS/AFP / Getty Images
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The new leader said Greece will call for a bridging loan, rather than an extension of its bailout.

"Greece wants to service its debt. If our peers want so too, they are invited to come to the table of dialogue so we can discuss how to make it viable," he said, while also outlining plans to cut bureaucratic spending and tackle corruption.

We need an honest negotiation with our partners that does not condemn the greek economy and society to unending recession

Alexis Tsipras@tsipras_euFollow

We need an honest negotiation with our partners that does not condemn the greek economy and society to unending recession

1:24 PM - 08 Feb 15ReplyRetweetFavorite

Greece wants to service its debt, which is now over 180% of GDP. It's impossible to service as long as our partners insist on austerity

Alexis Tsipras@tsipras_euFollow

Greece wants to service its debt, which is now over 180% of GDP. It's impossible to service as long as our partners insist on austerity

1:13 PM - 08 Feb 15ReplyRetweetFavorite

We aim to work with our partners in Europe to achieve these goals. What we will not negotiate is the history and the dignity of our people

Alexis Tsipras@tsipras_euFollow

We aim to work with our partners in Europe to achieve these goals. What we will not negotiate is the history and the dignity of our people

2:19 PM - 08 Feb 15ReplyRetweetFavorite

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