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Europe driving the market action today as global leaders say yes Greece should stay in the Euro -- they always say that -- my next guest.
Says the -- Philip Johnson Greece could exit.
Joining me now is -- as Roddy senior economist and market strategist at law that -- Linda.
Milton look we're hearing boldly EU leaders say we absolutely want Greece in the eurozone -- -- hearing from more more EU officials of their preparing.
For Greece's exit how do you think this will play out.
Well I think it's up to the Greeks the Europeans don't want to lose them if the Greeks go with a -- staff certainly.
They still all the debt -- euros they still can't pay and of course if they've gone there's no control so.
Everybody in Europe the Germans in particular who would like to retain control don't want the Greeks leave it will be up to the Greeks in.
We'll find out and their election next month.
And they are going to make it attractive however they wanna keep the Greeks in and under control of the stronger nations so.
They're gonna try to make it attractive my guess is they will lomb.
They will accommodate and probably do some face saving compromises.
To keep the Greeks and.
And that's really down to Germany is that this looks to me like it's gonna come down to a battle between.
Germany and France and all the nations saying -- that look we need to have Euro zone bonds something that Germany is.
Seriously said -- to up until this point do you think they give -- -- I bet I'd be surprised if they did because the Germans have made it very clear if they have eurozone bonds their effectively German bonds there on the long everyone else in Europe gets security.
I don't think Merkel will give -- On this issue now they may be some kind of compromise that I can envision but with that kind of bonds that's how long this suggesting I can't see the Germans behind so how they got to promote growth while still cutting back and keeping their budgets under wraps.
Well this -- very interesting and Monty and -- he Monte in didn't premier -- in Italy obviously drug either -- the us European Central Bank.
Have alluded to keeping the austerity in place for the overall budget but turning to promote growth.
For things like labour market reform regulatory reform.
They did a little closed mouth about the exact details but what's leaked.
They set of a two track process where you working on the structural.
You working on the micro with the growth and your retaining a macro austerity budget that right probably please the Germans it's what they did a few years ago.
Let's look at -- even bigger picture it is indeed Greece is forced out or just falls out it can no longer us you know meet the requirements of the EU.
How concerned are you about Spain a -- that could do to the markets on this side of the pond.
Well I think it's a long way before it gets over here there enough fire walls in Europe to keep that -- from crossing the Atlantic as quickly as Wi -- and say this time last year -- On Spain would be next stop and it would be a question its all of question of contagion Greece itself.
Is not gonna bring Europe down when talking about that that's already been written down 70%.
And it was a small number not relative to Greece's resources.
But relative to Europe's.
If there's a contagion in Spain it's going to take the European central bank and the European nations in this case again.
Led by the Germans and two -- stole back from spreading if they can.
I Europe could probably whether Greek departure warm way or the other pretty easily.
-- in Spain will be the focal point.
As you say the next big step -- have a meeting in on Wednesday in Brussels of EU leaders but it's that.
Greek election on June 17 -- -- -- thank you so much for joining us with your thoughts we appreciate it.
Thank you us to --
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