Threadneedle ‘of the view’ Greece will leave euro

  • Print
  • Comment

Mark Burgess

Mark Burgess

Burgess said Europe remained in a crisis over the vast levels of government debt held by some eurozone countries.

The chief investment officer (pictured) said: “Peripheral Europe, and Greece in particular is saddled with too much debt, recession and an uncompetitive exchange rate and faces a range of extremely unattractive outcomes.”

The manager of the Threadneedle Equity & Bond fund said it was unclear whether Greeks would accept stringent fiscal measures as a result of any further bail-out.

Burgess said a Greek exit would be similar to a heart attack to the European financial system.

He added, “The question is, is it done in a coordinated fashion, accompanied by a state funded recapitalising of the banking system, a cut in rates, and a massive injection of liquidity, or is it uncoordinated?

“If it is the former then it is potentially positive and markets can ultimately move on and move forward. It would also act as a catalyst for Italy and Spain to properly address their deficits.

“For Greece it would be an extremely unpleasant and traumatic event, but properly planned and implemented would at least give them the chance to move on.”

  • Print
  • Comment

Daily Email Updates

If you enjoyed this article, sign up to receive the latest breaking news and analysis for your industry from Fund Web.

Money Marketing Awards 2015

Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your say Edit my profile/screen name

You must sign in to make a comment


Fund Data


Will the oil price rise above $50 a barrel this year?