Greece talks intensify
The situation in Europe is a lot stronger
All this year it seems that Greece has been in and out of the headlines. As such, it is certainly on the radar screen for SMSF investors. In the video below, Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital provides an update on the situation in Greece.
Greece is at crunch time and through June they need to start making certain payments. They can potentially delay them till the end of the month, but we’ve started to see the intensity of negotiations between Greece on the one hand and the European Union on the other hand start to ramp up.
As such, they are likely to reach a deal at the end of the day, enabling Greece to keep motoring along in all of this. That said, even if there is no deal, the likelihood of Greece causing a re-run of the Eurozone crisis (which we saw back in 2010—2012) is low.
The simple reason for this is that the rest of Europe – France, Spain, Italy, Portugal, Ireland – are in much stronger shape than they were several years ago. They’ve got their budget deficits down, they’ve reformed their economies to greater or lesser degrees, a couple of them have even come off the life support with the bailout plans. With the European Central Bank buying up bonds in Europe to help support growth in the region, the situation in Europe is a lot stronger and a lot more resilient than it was when Greece was last in the headlines
About the author:
Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital