New York Times
November 1, 2011
The euro zone is now furiously bracing itself for the likely collapse of the Greek government. Faced with the prospect of Greece voting for a fully fledged default and euro exit rather than last week's debt deal, the remaining euro zone members must themselves choose: stick even more closely together or be pulled apart. They will stick together -- and survive.
However, the euro zone’s survival has very little to do with Greece. The Greek economy is too small to cause any noticeable impact on the euro zone and even the widespread and substantial financial contagion of a default can be absorbed. Last week's debt deal may not appeal to Greece, but the beefed up bailout fund is capable of taking care of the immediate consequences of a Greek default. Containment has been addressed and would focus on supporting other indebted states.
More
No comments:
Post a Comment