18 June 2015

Greece - potential exit from Eurozone

Faced with an inability to service its debt levels, the Greek economy faces the traumatic and unprecedented possibility of leaving the Eurozone


While the fear of contagion may exist, namely that other peripheral Eurozone economies would see heightened risks of such a path, markets are reacting calmly. This either presumes the likelihood of a last minute deal (my preferred conclusion) or an acceptance of the economic ramifications. Already determined pressure exists within the Eurozone from such countries as Ireland, where austerity programmes have been undertaken successfully with effective economic recovery seen. At present, I would reiterate the uncharted territory for the Eurozone in seeing a member state leave and I would favour a last minute solution. The extent of the cuts being required by the European powers are de minimis compared to the tourism income that would flood in should Greece devalue so, civil unrest aside, the path to recovery here is painful, but not inconceivable.

Understanding Finance

Helping clients understand what we do is key to building relationships. To explain some of the industry jargon that creeps into our world, we’ve pulled together a section of our site to help.


Related articles

Many viewed November as a month when the rotation from growth to value took hold. James Godrich explains why he doesn’t feel this is relevant.

What a difference a week can make!

James Godrich, manager of the Coleman Street portfolios looks back at October.