Financial markets no longer fear domino effect after Greece, Estonian analyst says ({{commentsTotal}})

Peeter Koppel
Peeter Koppel Source: Photo: Postimees/Scanpix

Financial markets no longer fear other Southern European states leaving the Eurozone in case of Greece's exit, says finance expert Peeter Koppel.

“Let's be honest here, South Europe has other nations which are too similar to Greece in this sense,” he told ETV's “Kahekõne” program, adding that Portugal, Spain, but also Italy and France could fall under that category.

He said a short while ago Europe's greatest fear was Greece leaving the Eurozone, and dragging other countries in the region along with it.

“Today Greece's case is clearly isolated,” he said.

Asked if the former Estonian foreign minister Jürgen Ligi could have helped Greece, Koppel said Ligi would have implemented some measures, but the important factor is the difference in culture. “Which is possible in Estonia, such as wide-spread salary cuts during a crisis, would not have been possible in Greece in the same format.”

Greece has recently been pushing for more breathing space on its bailout terms, something the EU, especially Germany, has shown little willingness to accommodate, sparking the thought that Greece could be on its way out of the currency area.

Estonian politicians have so far not warmed to the idea of relaxing rules for Greece, with Finance Minister Maris Lauri saying this week that the Eurozone would survive Greece's exit.

Editor: J.M. Laats

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