Courtesy: CNBC: The possibility of a sovereign default by Greece cannot be ruled out, Jean-Claude Juncker, head of the Eurogroup of finance ministers from the single currency zone, said in a German magazine on Saturday.
In an advance copy of comments to news weekly Der Spiegel, Juncker was quoted as saying Greece could no longer expect solidarity from other euro zone members if it cannot implement reforms it has agreed.
“If we were to establish that everything has gone wrong in Greece, there would be no new program, and that would mean that in March they have to declare bankruptcy,” he said.
The very possibility of bankruptcy should encourage Athens to “get muscles” when it comes to implementing reforms, he added.
Greece’s government on Saturday continued talks with lenders to secure a 130 billion euro ($171 billion) bailout before turning to the trickier task of persuading political leaders to back unpopular reforms involved in the rescue.
All this is very complicated and no-one seems to know the best way.
In any case, Argentina I think ‘defaulted’ some years ago and they recovered well. In other words: ‘defaulting’ may not be the worst case scenario for Greece.
I am not sure of course what consequences this would have for the Euro. Greece should be out I suppose…