Greece’s debt crisis should worry more than just its citizens.
On Thursday, Eurogroup finance ministers ended a meeting in Athens with no agreement for Greece and its creditors.
Greece owes the IMF €1.5 billion by June 30th but it seems unlikely that Greek Prime Minister Alexis Tsipras and his government will agree to the terms set by the EU in order to receive a €7.2 billion bailout package.
Economists have been warning of the ramifications of a Greek default and “Grexit” from the EU. But, the economic effects of Greece’s situation are already being felt across Europe.
According to Bloomberg, the Greek debt crisis can be blamed for about $US897 billion lost by European equity investors this year.
Bloomberg adds that the Stoxx Europe 600 Index — a measure of large, mid and small cap companies from 18 European nations — is having its worst month in two years because of Greece. The index had it’s best quarter since 2009 earlier this year, and reached an all-time high in April.
Yet, a third of these gains have already been wiped out as the situation looms over what is otherwise an economically sound Europe.
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