Tuesday, March 29, 2011

Euro economists expect Greek default, BBC survey finds

BBC News
March 28, 2011

Greece is likely to default on its sovereign debt, according to the majority of respondents to a BBC World Service survey of European economists.

Two-thirds of the 52 respondents forecast a default, but most said the euro would survive in its current form.

The euro crisis began when it became clear that Greece would struggle to pay its debts and had to be given rescue loans by the EU and the IMF last year.

However, Greece's finance minister rejected the suggestions of a default.

Since the Greek rescue, the Irish Republic has also had to seek help. And Portugal seems increasingly close to meeting the same fate.

The forecasters the BBC surveyed are experts on the euro area - they are surveyed every three months by the European Central Bank (ECB) - and as well placed as anyone to peer into a rather murky crystal ball and say how they think the crisis might play out.

The survey had a total of 38 replies and two messages came across very strongly.


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