Feature: Greece returns to drachma? No way, Greeks say

As Greece heads to general elections on Jan. 25, fears that the country could leave the eurozone and return to the drachma, one of the oldest currencies in the world, have been revived.

The euro or drachma debate and speculation have returned, as radical left coalition SYRIZA, which advocates a stricter line in negotiations with Greece's creditors over further debt relief, leads in opinion polls.

Should the country re-adopt the currency it had until it switched over to the euro in 2002? No way, the overwhelming majority of Greeks responded. Seven out of 10 Greek citizens reject the idea, according to recent opinion surveys.

Even SYRIZA has softened its rhetoric, compared to the 2012 general elections when it was threatening to tear up the bailout agreement, and now stresses its commitment to the common European path.

"No, we do not expect and we do not want any default. It would be a blow not only for Greece but also for the eurozone. There is no question of Grexit," John Milios, SYRIZA's chief economist, categorically told Xinhua in a recent interview.

Milios reiterated the predictions of several analysts that in such a case, the drachma would be devalued, people would suffer more, and the eurozone would collapse within months.

"We will stay in the eurozone. Nobody wants Greece thrown out ... There is also geopolitics in the picture which has much greater influence than strict economics," Giorgos Stathakis, also an economics professor and member of SYRIZA's economic team, said during a press briefing on Wednesday.

"There is no Plan B ... 2015 is not 2012. Europe is facing problems similar to Greece ... We have indications that the response to our requests will not be negative," Stathakis stressed.

He noted that there have been more than 100 cases of debt restructuring in the past 50 years worldwide. No country with 173 percent debt load could service it, SYRIZA argued.

Advocates of Greece's return to the drachma say the benefits of regaining control of its currency, such as increased competitiveness, would outweigh the costs of leaving the eurozone and defaulting on its debt.

With a cheap currency, goods and services would be more affordable and tourism would flourish, according to the argument. By quitting the euro, Greece would miraculously shrink its debt burden.

For prominent Greek economists, the argument is ridiculous. What about inflation? they asked. What about capital flight, bank credit dry up, shortages of essential goods and civil unrest? As for competitiveness, they reminded that most Greek exporting companies depend on imports for raw materials.

Nikos Christodoulakis was finance minister when Greece adopted the euro. "We need a change of policy, not a currency change," he said, stressing that without the euro's life jacket, the Greek economy would have collapsed during the international crises of the past decade.

Economics professor Miranda Xafa, CEO of E.F. Consulting firm in Athens who also served as chief economic adviser to Greek governments in the 1990s, had this to say:

"The drachma alternative leads to financial collapse ... Greece does not need a return to the drachma, but a shock therapy to transform into a competitive economy," she stressed in a recent article.

She suggested a string of further structural reforms to tackle bureaucracy, corruption, monopolies, growth and employment.

Although both the Greek side and European officials are assured there is no Grexit plan on the table, the country's relationship with the eurozone is being tested again. An impasse in negotiations between the new government and creditors over their future cooperation, and the final resolution of the sovereign debt challenge could have disastrous repercussions, economist Danai Zevgaropoulou argued.

"In case of failure, Grexit is a possibility," she told Xinhua, noting that German finance minister Wolfgang Schauble was underlining that any new government would have to stick to the agreements made.

Eurozone member states are today better prepared to deal with a Grexit. Europe is less financially exposed to Greece than it was at the start of the crisis. They would suffer losses, risking the eurozone break up, but for Greece, things would be tougher.

"It depends on the way the new government would handle the crisis. It depends on whether they will be prepared for this scenario, whether chaos prevails or whether the situation would be under control so we can hope for recovery after at least three years," Zevgaropoulou said. Endit