Is Europe really safe in the event of a Grexit?

The country’s room to manoeuvre really is almost gone

Greece is on the brink of crashing out of the eurozone. So what’s new? Haven’t we been reading headlines like that for the past three years.

So could Greece set back the UK recovery, even reverse it? The panjandrums of the eurozone insist that there will be no financial or economic “contagion” if Greece slips out of the euro embrace, because the system has been shored up in the past three years. Europe can take or leave Greece, they insist. Perhaps they’re right.

But we’d do well to remember that these are the same people who confidently predicted back in 2010 that Greece would rapidly return to growth after taking an invigorating dose of their carefully distilled austerity medicine. And look how that turned out.

Full article: Is Europe really safe in the event of a Grexit? (The Independent)

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