If the people are not paying their taxes, they’ll never pay it off.
Looking at pre-2007-ish Greece, though, their economy was in relatively good shape - low unemployment, low debt, all while maintaining very generous public entitlements. This suggests that their system did work well, but that it was not resilient enough to withstand a large recession. I think Greeks are hoping that once the recession blows over, things will return to normal again (and I think it could but with some compromises).
Any way you look at it, they will have to cut spending significantly (even if temporary) in order to bring tax levels back down and entice businesses to start back up. More business = less unemployment = more revenue. It is at that point that they can increase spending again, making sure to keep it at a sustainable level.
People on travel forums are warning that businesses in Greece are not taking their credit cards. I suppose they are worried that the banks will close and they won’t be able to complete the transaction. So it’s cash only for travelers.
With all this uncertainty, I’ll bet bookings for trips to Greece are way down these days and without tourism their economy will suffer even more.
Actually, the rate of tax payments in Greece has increased over the past 3 years AND Greece had paid off its debts to French and Italian banks from the last bailout. The only money left that Greece needs to pay is to European governments (not banks). Greece has been complying with bailout requirements, albeit at a rate that’s slower than the Europeans would like. (Hence the outstanding loans.) Greece wants to continue to be able to pay its debts, but it needs an extension. Something the EU HAS done in the past for other nations/institutions. But isn’t willing to do so now for Greece.
another major threat to greece in this current crisis … if it is seen as abandoned by the rest of europe …turkey may invade the rest of cyprus , some of the other greek islands or even mainland greece.
From a practical perspective, I can’t imagine traveling to a country and not having some local currency on hand. Depending on the situation, the conversion at an ATM may be more favorable, but you never know if you might need cash quickly upon arrival before having the chance to find an ATM that is not going to charge unreasonable fees (as you have to explore which ones have affiliate relationships with your bank). We always get some ready cash - say 50 to 100 Euros or comparable local currency - prior to travel.
I second that, even if Greece gets kicked out of the EU, it is not physically possible to stop taking the Euro on one day’s notice. There are significant infrastructure changes that will need to be made. But it is another reason to make sure you have cash/credit cards rather than just debit cards.
And I’m not sure I want to handle money that has been hidden in someone’s underclothes. If you’re that concerned about pickpockets, there are hidden money belts that you can get that go under your clothes yet not in your underwear.
if you are going to bank on a currency being your “way out” in Greece if all hell breaks loose, I would reiterate that you should bet on U.S. dollars, and not Euros.
The problem is not that Greece the country cannot become Euro-less overnight. The issue is that Euros might no longer be accepted by the person you need to buy lunch from or pay for a taxi ride or [insert other service here]. If THOSE people/services cannot do something with the Euros, then they will not take them. And when you need THIS taxi, it doesn’t matter if MOST taxis or SOME taxis will take Euros.
I recommend you carry Euros, obviously… but your “get out of the country” fund should be in USD (if you decide to have one). The dollar is the most reliable currency in the world.
Turkey is slightly busy with its southern border right now.
“sorry I don’t want your dollars, they smell funny” ???
doubtful. But I agree with your money belt recommendation.
If Greece did exit the Eurozone overnight, it doesn’t mean merchants won’t take euros. Merchants in lots of countries take payment in other than their national currency.
Not exactly what I was getting at, but there is a certain “ick” factor when thinking about money hidden in underwear. That said, money is totally unsanitary no matter what the source. Google articles about cocaine and hundred dollar bills…
It pays to always have some ready money in both local and more “international” currencies. H used to teach regularly in Peru. One year, the train to Machu Picchu was washed out. The ATMs quickly ran out of money. Debit cards were worthless. What worked? Dollars and credit cards. The message is hedge your bets. Carry multiple sources of financing. Both physical and electronic. And I still don’t want money you pull out of your crotch :)) .
“Turkey is slightly busy with its southern border right now.” turkey is very much in control and happy with the situation on it’s southern border and is helping to fuel the problems in syria and iraq. …turkeys only threat would be from Iran, who will not waste it’s energy and time battling turkey.
http://www.bbc.com/news/world-europe-33305019
banks not opening in Greece tomorrow…long lines at ATM’s
It’s not good for Greece either way, stay in Euro or not.
We have several friends vacationing in Greece right now. They were advised to take all the euros that they would need in cash. Their big worry right now is transportation strikes. It will be interesting to see what happens tomorrow. But, as of this morning, they are having a fabulous time. 
The stock market would tank here as well.
this is false. Iran is not Turkey’s primary issue along its southern border.
when ■■■■ hits the fan, you want access to USD.
There is no telling what conditions would come with a Greek exit from the Euro, and what impact those conditions could/would have.
60 Euros is the limit per day. Bank is not opened until July 7th, not just one day close. If you stay at a hotel, you maybe able to get some cash from the hotel.
Per talking heads on cnbc… if your credit card or debit card is issued by a US bank, they will be just fine. Only locals are affected by the withdrawal limits. You will be fine… if you are able to find a functioning ATM without a long line. 
BBC seconds that; this link has some very good recommendation for tourists traveling to Greece:
Stock market did tank, down 350 points in one day. Hoping for more tanking so there will be a buying opportunity.
… exactly… if there is no money in the machine, you aren’t going to get anything.
Me too… 11000 sounds good.
Not sure interest rates can go any lower, so when the next one hits…
If the OP is still reading, here’s some advice from an Irish newspaper. http://www.independent.ie/life/travel/travel-news/q-a-should-tourists-be-worried-about-possible-grexit-31339310.html