Greece Defaults. What now?

[MikeRox]

Qwark said:

MikeRox said:

Sadly this is where Greece's problems kick in. The logical thing, would be to reduce Greece's debt, and put the country on a sustainable path back to prosperity. However, Portugal and Ireland took their medicine without such concessions. More so though, if Greece is allowed haircuts on it's debts, Spain and Italy etc will start to demand the same.

There is also the fallout in Germany where the population seem to be incredibly reluctant to any kind of support for Greece. I suspect Angela Merkel would be more forgiving in terms, were it not such a vote loser in Germany.

Let's not forget UK which is probably even more reluctant against another hopeless investment, bringing the BRexit closer. Even if you erase all Greece it debts it's economic system and taxation system are corrupt to the core. The path back to prospeirity is the EU parlement completely taking completely over for 2 years and making radical changes aka transforming it in a northern European country, I doubt Greece is wanting that.

On the Greece front, the UK isn't so invested as it is. I think even in 2010 the UK Gov were refusing to put money in. So there is just about 10bn Euros in our commercial banks in Greece.

I don't think a BRexit is coming closer though.