The world is paying attention to the debt crisis in Greece and how it could impact the global economy.

Some fear that if Greece leaves the European Union, it could lead to the eventual collapse of the entire Eurozone, which could potentially crush international stock markets and damage the United States economy. At this point, everyone is waiting to see the impact, University of Toledo economist Gbenga Ajilore said.

“In terms of the global economy, other than changes in the market, nothing significant will happen until either a deal is agreed upon where Greece receives financial assistance, or no deal is coming and Greece has to figure out their debt issue on their own,” Ajilore said.

Greek citizens have voted against receiving further bailout assistance from European creditors in exchange for spending cuts and tax hikes, but without it the country will be unable to repay a $3.9 billion bond held by the European Central Bank (ECB), due Monday, July 20, Ajilore explained.

If Greece fails to pay, the country will officially be in default, which could lead to the collapse of its banking system and result in slow economic growth in Europe, he said.

“With Greece, the next step is to find out whether the ECB will try to get Greece to agree to more austerity in exchange for financial assistance or give them financial assistance without these measures,” he said. “The question is whether the ECB and Greece will continue to play this game of chicken.”

To schedule an interview with Ajilore, contact Aimee Portala at 419.530.4279 or aimee.portala@utoledo.edu.

Tags: College of Languages Literature and Social Sciences