The boss of one of the world’s largest independent financial advisory organisations warned in a new report that the geopolitical and economic fallouts from a Greek exit from the Euro would be catastrophic.
Nigel Green, CEO of deVere Group, stated that ‘History will teach us that Greece, and therefore the rest of the Eurozone, would have been better off had it not joined the Euro. Hindsight is a wonderful thing. But there’s no point looking back. A solution must be found. It is time to get creative because the geopolitical and economic consequences of not finding a solution will be the real Greek tragedy.’
He continued: ‘A Grexit would mean that joining the Euro doesn’t necessarily have to be permanent and for governments and European authorities to suggest otherwise would not be credible. This would set an alarming and wholly destabilising precedent across the Eurozone in the longer-term. China and/or Russia could also move to ally with Greece, offering them their considerable influence and resources. This would inevitably cause concern amongst
many western governments and it would highlight further the flaws within the concept of a European Union.’
Mr Green also expressed his fears that an exit by Greece from the Euro would lead to an ‘effective halt’ of any economic progress made by other countries in the Euro and this could lead to ‘untried and untested tools’ to reinvigorate economic growth being deployed by ever desperate governments.
The comments were made in light of fraught negotiations between Greece and its creditors, the chief of whom are the
European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF). A meeting on Wednesday 24th June was ended abruptly after decisions were not reached and the parties failed to communicate
effectively, with the future of Greek’s involvement in the Euro remaining precarious.