All eyes of the financial world on fixated on the bailout of Greece and how to help rescue the country from the brink of financial ruin.

Eurozone finance ministers held an emergency meeting Tuesday to discuss the Greek financial crisis,  hoping to reach an agreeable resolution and possible proposals on how to win support for a financial bailout.

It’s possible if no solution is reached, one outcome is that Greece could  break away from the Eurozone.

Failure to Pass Bailout Referendum Is Seen As A Victory For Democracy:

Boston College Associate Professor of Economics and former economist with the Clinton Administration Robert Murphysays the overwhelming rejection by Green citizens of additional austerity measures is a victory for democracy within the European Union.

“Within the European Union there’s been concern for several decades that the increasing concentration of power in Brussels is not democratic, and so there’s been a view of a democratic deficit with the EU, and it confirms the people made the choose of what they want to do,” according to Murphy.

Murphy, who spoke with WGBH Morning Edition host,  says Greek Prime Minister Alexis Tsipras and his party coming into power made a pledge they would not agree to further austerity measures if citizens voted “no” to a bailout proposal of tax increases and further budget cuts to help bring financial problems under control.

Why Does Greece Need the Eurozone?

As a member of the European Union…. it’s a benefit to be part of a single-market, where borders no longer exist says Murphy.

Murphy says, "if they leave the Euro, Greece will have to leave the EU."

"If they can get a deal now, and it brings debt relief, they will be in a better position moving forward. If they leave the Euro…it could result in depreciation of alternative currency, furthering lower the standard of living for citizens of Greece and rising import prices, " according to Murphy

n the flip side, in the long term, an alternative currency and leaving the Euro could provide improved competitiveness and eventually turn things around.

Greek Needs Debt Relief:

Murphy says, "Tsipras may have the upper hand right now in negotiating a better debt relief settlement.  He won the “no” vote with citizens refusing to take more austerity measures."

The IMF, the International Monetary Fund, has said even with austerity imposed Greece would never be able to re-pay its debt, and restructuring may be the better answer to get citizens to accept more austerity measures.

To listen to the entire interview with BC Professor Bob Murphy and WGBH ME host Bob Seay click on the audio link above.