The ongoing talks between Greece and its lenders is a negative for all of Europe, according to one expert. Greece got some breathing room late last week when it delayed a debt payment that was due to the International Monetary Fund. Dr. Dennis Novy, an Associate Professor of Economics at the University of Warwick, said he believes Greece does intend to pay the money due, but there is no sign that the negotiations are getting any easier. While Greece has been discussed at the G7 meeting, Novy doesn’t see the G7 having a role to play in Greece, and said he doubts Athens wants another entity putting pressure on it. While Greece is only about 2% of the eurozone economy, Novy said the issue isn’t just about that country. Novy said ‘this is really about other countries further down the line.’ Novy mentioned both Spain and Portugal, which have upcoming elections. He added ‘it’s a difficult situation for the European Union, if in Greece you have a very hard core left wing government that is seen as very successful by people and if it gets its way, then what kind of message is this going to send out to similar parties?’ Novy said that question is a serious worry for the European Commission.
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