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How a Greek Exit Could Impact the Eurozone
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How a Greek Exit Could Impact the Eurozone

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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The prospect of the far left-wing Syriza party winning the Greek snap presidential elections on January 25 has heightened uncertainty within the European Union and other countries doing business with it. Pushing populist measures, Syriza (or the Coalition of the Radical Left) wants significant debt write-offs and freedom from the austerity measures that came with previous bailout packages — moves that could trigger Greece’s exit from the eurozone. Those developments would set political and economic precedents and have a contagion effect among other EU countries that have bigger debt burdens, according to Wharton finance professor Franklin Allen . “Two countries that are big debtors where there is a chance populist parties may win are Italy and France, [but] their elections are at least a couple of years away,” he said. Allen is also a professor at Imperial College in London and heading its Brevan Howard Centre.…

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