Investment View
In May 2010, when European finance ministers emerged from a weekend of emergency meetings to present a €110bn bail-out for Greece, there was belief that the crisis had been stemmed. European finance ministers have now announced agreement on a further bailout, following protracted negotiation. This will allow Greece to avoid a disorderly default when a €14.5bn bond payment comes due on March 20. Although no one is certain what the consequences of such an event would be, economists have warned that it could not only force Greece out of the EU but also trigger bank runs in Portugal, Italy, Spain and even France. It is perhaps too early to judge, but it seems that the Greek problem may be parked for a while, although it has not gone away.