What Next for Greece? Market Analyst on Prospect of Eurozone Exit

After dramatic developments in Greece over the weekend sent the euro falling, shares tumbling and forced up yields on some government bonds, City analysts have put out a range of views about whether the country can stay in the single currency and the how markets might react if it crashed out.
One immediate question is what the European Central Bank (ECB) could do if Greece fails to make a crucial loan payment to the International Monetary Fund (IMF) on Tuesday.
Analysts at Barclays have commented: “Things are moving fast, but developments over the weekend have heightened the risk of an eventual Greek default and exit from the euro....However, we think that the current crisis – whatever the outcome – will probably not damage the longer-term prospects for European equities.”