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Is Exit the Best Option for Greece?

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    Former U.S. Ambassador to the U.N. John Bolton on what can save Greece from a fiscal crisis.

  • Duration 3:45
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Tensions bubbling back up in the eurozone a flurry of high level meetings taking place today and into the weekend over Greece's future.

Plus -- word is Spain it is in talks to take a massive sovereign bailout.

Make sense of all this we turn to John Bolton former US and bass.

And Fox News contributor thanks so much for joining us ambassador.

-- do if it.

So.

You know -- news that we have here at Citi Citigroup analyst Michael Saunders he recently put out a note saying he believes that there is it 90%.

Chance.

That Greece is going to exit the Euro in the next twelve to eighteen months he said it could even happen by September October.

What say you on that.

Well I think that's a very realistic prediction I mean I think -- at the point where temper rising and equivocation just aren't gonna cut it anymore.

Really the best solution for Greece at this point is to exit in effect devaluing.

Said that it can get on a realistic economic footing that the reason that this is gone on so long is the theology in the European Union.

That you always have to keep riding the bicycle Ford is they say it.

And they're just paralyzed with fear that a Greek exit.

-- compromise some of their other political unification objectives I would say five or -- so be it we've got our people worry about.

Is that the future for Greece I mean today we saw that the Greek Prime Minister met with the Euro -- leader -- -- me no leniency and he indicated from Brussels for Greece.

I -- where where are we today.

Well I think Greek Prime Minister some Maris is the unfortunate that recipient of the bad news from the previous governments wretched economic policies.

And and they've got to make a hard choice but honestly I think it's better for Greece to face up to the fact of an exit they won't be leaving the European Union they'll simply be leaving the common currency Britain Sweden Denmark.

All still in the EU without the Euro and I think honestly from the EU's point of view.

It would strengthen their hand and deciding how they're gonna handle the much larger economies like Spain Italy.

So I German Chancellor Angela Merkel she's gonna be meeting with smarts tomorrow.

-- she's urging him to continue on with the reform -- -- in Greece eyes she says she wants to wait to see what's in the troika report what exactly is on Angela Merkel saying here.

I think -- And she's -- a political room to maneuver in Germany she's not gonna open the checkbook again would be my judgment I think she's already taken too much domestic political risk there.

And and it's at this point that really I think -- as she and Germany are at the stage where.

There's just no more relief coming for the troubled economies I think that's her message.

But you know for for Greece to meet even the current -- it requires a lot more economic growth and it's got.

So facing up to reality I think again points to agree -- -- and I do think sooner rather than later.

And that the marketplace that is even watching that the the yields on the Spanish a ten year.

What's what's gonna happen there with Spain they're negotiating with eurozone partners now for money.

What's the future there.

Well Spain doesn't wanna admit -- in the bad shape that there and so there's a little -- Alphonse and Gaston routine going on here I think it's inevitable Spain's gonna require assistance and again -- Question comes down to is really whether.

Germany is prepared to see all of its previous red lines crossed and have a massive sovereign debt.

Bail out that's not what the ECB was set out to do so if -- agrees to that I think she's gonna have real trouble domestically.

-- ambassador -- -- thank you for so much for joining us and I.

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