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Barclays' Henk Potts on the impact of political uncertainty inside Greece and how it’s impacting the economy and the EU.
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Session thank -- joins us said director of a global research investment -- Barclays to talk more about the European situation what assumptions now do you make -- about.
What happens to Greece.
Well quite frankly when you look that Greece's situation has changed dramatically the political uncertainty that's been generated a critical -- the weekend now takes is the point where you say it's actually too close to coal whether Greece can stay within the Euro zone without commitment to austerity when the European Union.
The International Monetary Fund.
What -- handing out about those old imports -- funds that Greece needs without those funds you have to as I've highlighted some deep fault on that debt.
And presumably be -- and lead to leave the Euro zone and math course and itself.
Means that the risk of contagion in Greece is quite dramatically -- potential.
For the euros I'd -- fragmented dramatically increases and that's been on -- having invested in.
As much -- a tangible way she possibly can tell us and -- this is a hypothetical game would be playing of course but.
Let's assume for a moment that that scenario that you have what happens in Greece is kicked out.
Inevitably when we have a conversation here in the US somebody asked you -- why do we care what's gonna happen what is what's going to happen if Greece is kicked out.
Well the question is whether you can contain -- within within itself you can almost think event with.
That Greece is.
Gangrene million and if you I -- -- that's all from the body can live again and that's not too bad news the question is.
Does it start to affect the rest of the quality when it results in -- -- not -- -- can collapse the Euro -- the hundreds of schools that when you look at Greece we appreciate.
They've got specific problems.
The all necessarily the same problems -- financed by and we find -- school.
Worth remembering that debt levels and some of those other areas another win meant the -- propensity as you see in Greece.
You they have ruled industrial price they have a a more competitive export sector that a -- compliant tax I think there's a number of factors that can suggest that actually in that brief was to leave the Euro zone.
It doesn't mean the Euro -- project is that.
-- in Europe.
I mean on the relative basis at least you're you're at how optimists Hank and you know -- -- because a lot of people we talked to say.
All its trouble for -- Spain and the yields will keep going company's other countries the next thing you know it's affecting US.
Up politics and economics but did you may be in in the what it is the way you see it.
It would be for the best long term if Europe can move on without Greece.
And I think it's necessarily the point he can say that's the end of the Euro zone project even.
Without Greece coming through I think when you look at some of the aspects of elsewhere in the eurozone and we -- the likes of Spain and Italy and volumes are fantastic example that I introduced austerity measures that been working with international partners have been working with the European Union and the International Monetary Fund and that -- gone down that road and that stepping -- to improve that situation.
Many people stochastic -- gone vol -- -- -- cannot be result foundation through the help of the Euro -- and they probably both could be better off on their right.
-- I think it will in fact the rest of the -- unnecessarily.
Are there is from Barclays -- Potts thank you sir appreciate it.
