In a Houston Chronicle op-ed, Ted Temzelides, Baker Institute Rice scholar and professor of economics at Rice University, discusses the potentially devastating effects of a loan default by Greece. A default would imply that Greece would leave the eurozone, he writes. While Greece"s departure would mean its problems would no longer affect the rest of the European Monetary Union, it would also open the door for the next-weakest country to be at risk of leaving. If the European Monetary Union is to survive, Temzelides says, it must become a meaningful fiscal union, and Greece must deliver on its promises of privatization and major reform. "But reform does not even have a chance unless Greece remains part of the monetary union."
- Download Temzelides' Feb. 18, 2012, op-ed, "Closer union needed to avert the collapse of the eurozone."