In addition, there are the knock-on effects – Germany and its domestic banks, for example, hold some 68.2 billion euros of Greek debt that will suddenly become even more of a burden in a post-default environment. But as well as the direct practical implications, a number of key features of the saga provoke wider comparisons.įirstly, any move that changes the economic stature of a European country to this extent inevitably affects those who trade with it. Of course, any economic change of this scale is bound to have an impact on the way business is done across European boundaries. At the time of going to press, the consensus is that this move will be interpreted as a no to the euro and it has prompted much speculation that Greece will be forced to leave the eurozone, return to the drachma, create a new currency and/or some combination of the above.
The Greek people just voted “no” in their recent referendum on whether to accept bail-out terms that would have meant tougher austerity measures for the domestic economy.
