Greece is at the ‘worst stage’ of its economic crisis, a leading investment bank report has claimed.
In an analysis note from Bank of America Merrill Lynch, written in the lead-up to the emergency election in June, experts warned: ‘The risks of a coalition government against the austerity programme, or no agreement on a government at all — are increasing.
‘Although polls in Greece show strong support for the euro, we believe the current situation could trigger a chain of events that could lead Greece to exit on its own.
‘But if Greece were to exit, the implications would be profound for Greece and the Eurozone, with Greek growth shrinking as much as 10 per cent in the first year’.
In addition, a Greek exit could spill over to other countries, resulting in people pulling money out of their deposit accounts, threatening the stability of banking sectors and destabilising government bond markets.
There are worries it could also knock thousands of pounds off the value of individuals’ pension funds and properties even in the UK, meaning more people will find it harder to make ends meet in the coming months.
The land that gave us the word economy — from oikonomia — and democracy has reached a critical point politically, financially, socially and spiritually.
Much prayer needs to be made for those living in the shadow of severe unemployment in the country, as well as for those in other countries who could be pushed into poverty regardless of whether the Greek exit from the Eurozone goes ahead.