Threadneedle's Burgess: Preparing for a Greek exit

PREPARING FOR GREECE TO EXIT THE EURO

Threadneedle CIO Mark Burgess says it is increasingly a question of how, not if, Greece will exit the eurozone.

As we have said before, Europe is in crisis and the issue is increasingly becoming what is the least bad outcome? Peripheral Europe, and Greece in particular is saddled with too much debt, recession and an uncompetitive exchange rate and faces a range of extremely unattractive outcomes. Even if the German public can be persuaded to write a big cheque (and that is a very big if), it is not obvious that the Greeks could be persuaded to take the money and pay the economic consequences in terms of the fiscal rules that would be imposed upon them. Moreover, it would not address the issu...