Planning for Greek debt default gathering pace?
Luke Baker, Reuters/CNBC, 21.09.2011
Quote
Euro zone leaders may reject the notion of a "Greek default". But private sector economists and political analysts are largely agreed that it is only a matter of time.
The questions that raises - and they are vast - include: what would the impact on European banks be? How much capital would need to be injected into the system? How would that be carried out? And would it stop contagion beyond Greece? [...]
That is why even those analysts who expect a default say everything will be done politically to prevent it happening any time soon - simply because the repercussions are incalculable.
"Even if you imagine an orderly default that reduces Greek debt from around 160 percent to 100 percent, we're talking about such a big restructuring that it would lead to an earthquake," said Janis Emmanouilidis, a senior analyst at the European Policy Centre, a think tank in Brussels.
"The effects would be enormous and probably very difficult to contain. It's not something that would leave other euro zone countries unaffected." As a result, he said, leaders will wait as long as they can before accepting the inevitable.
One finance expert who is advising governments on preparing for a Greek default says the major economies in the euro zone are ready for it, even if they are not yet actively courting it. [...]
For the entire article see here or here.
Latest media contributions
EPC Update / Post-summit Briefing: What does the Ankara NATO Summit mean for Europe’s security?
Online Briefing, YouTube, 09.07.2026
EPC Update / Post-summit Briefing: Will the June EU Summit provide strategic direction?
Online Briefing, YouTube, 22.06.2026
EU Democracy Reform Observatory: Two years on: Why Europe’s far right keeps growing
Online Briefing, YouTube, 11.06.2026
EPC Update: Can Europe lead when leadership is in short supply?
Online Briefing, YouTube, 29.05.2026
What are the sticking points for the EU's new budget?
Quotes, Deutsche Welle, 29.04.2026
EPC Update / Post-summit Briefing: Spring European Council: Can the EU meet the challenges of the new world disorder?
Online Briefing, YouTube, 26.03.2026
EPC Update / Post-summit Briefing: Informal leaders' retreat: New momentum for European competitiveness?
Online Briefing, YouTube, 16.02.2026
EPC Update / Post-summit Briefing: The Greenland crisis: A test for Europe's credibilitye need for strategic choices
Online Briefing, YouTube, 23.01.2026
EPC Update: EUrope in 2026: the need for strategic choices
Online Briefing, YouTube, 12.01.2026
EPC Update / Post-summit Briefing: The last EU Summit of 2025: a real moment of truth?
Online Briefing, YouTube, 19.12.2025