Greece euro exit unlikely despite dire reports, fund manager says

Jenna Towler
clock

Greece will stay in the euro despite on-going political instability as the potential economic fallout from its exit would significantly hit global markets, a fund manager has said.

Old Mutual Asset Managers' Kevin Lilley said "sanity would prevail" and headlines predicting Greece's exit would be proved wrong. He said: "Greece will stay in the euro zone. If it left the country would have a new currency, which would instantly devalue. The banking system would implode, leading to turmoil within the country. "It would experience rampant inflation. For them it would be absolutely horrendous. Austerity is bad for them but the alternative would be far worse. "And for the rest of the eurozone it is bad as well, and for the rest of the world. Unless there is adequate ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Europe

Darius McDermott: Investing through the uncertainty in Europe

Darius McDermott: Investing through the uncertainty in Europe

'Challenging days'

Darius McDermott
clock 01 March 2022 • 4 min read

Allocations to European equities hit 15-month high despite election risk

BofA Merrill Lynch survey

Tom Eckett
clock 19 April 2017 • 2 min read

Renzi's referendum defeat - 'confirmation of changing political landscape'

Investment sector reaction

Daniel Flynn
clock 05 December 2016 • 7 min read