Watch: What is the Greek Economic Crisis About?

The Greek government announced Monday that restrictions on cash withdrawals will not apply to tourists, despite the country's financial crisis. 

Anyone holding a credit card issued in a foreign country can carry out banking transactions as usual, it said. The country's banks remain closed until July 6; ATMs will open at dusk. Greek citizens will not be able to withdraw more than 60 euros per day once banks reopen.

Professor Avi Simhon, Hebrew University of Jerusalem (HUJI) expert on macroeconomics, explained the situation to Arutz Sheva

"Following the heavy debt of Greece to the EU, which stands at around 300 billion euros, the EU reached an agreement with the previous government in Greece," he said. "However, the economic sanctions the EU seeks to impose on the citizens of Greece has brought the Greeks to despise arrangement and to choose [in the last election – ed.] a government which declared that it would not comply with the old EU arrangement and reach a new agreement." 

"The EU cannot afford something like that because it would be a dangerous precedent for it to countries such as Spain and Portugal, which are in a similar situation to that of Greece," he added. 

Simhon explained that the world's economies have not yet recovered from the world economic crisis in 2008, and even economic collapse of a country like Greece can bring the world into a new economic crisis. Prof. Simhon explained that there is a psychological layer of the current crisis in Greece, and that much depends on the response to the expectations of world markets.

According to Simhon, Israel will not directly be affected by the situation in Greece, but it is possible that the domestic crisis in Greece could lead to a global crisis.

Source: http://www.israelnationalnews.com/News/News.aspx/197461

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