“A Grexit would be the worst-case scenario for everyone”

José Manuel González Páramo

As analysts and market makers continue to debate on the possibilities of a Grexit as the new base scenario, Mr González-Páramo believes “it won’t happen” since it would mean a “failure” for all parties involved.

Financial contagion to other EU peripheral countries is not an option, since Spain and Portugal have indeed done their homework, he said. Athens only cut expenses and increased taxes, although no major reforms have been implemented so far, he added.

“The only way to to dispel the possibility of a contagion effect is by anticipating the deadlines that have been made public, as well as taking the necessary steps for banking and fiscal unions,” he said.

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