Greece's Withdrawal from the Eurozone Could Cause Global Economic Crisis

Greece's Withdrawal from the Eurozone Could Cause Global Economic Crisis PR Newswire GÜTERSLOH, Germany and BRUSSELS, October 17, 2012 GÜTERSLOH, Germany and BRUSSELS, October 17, 2012 /PRNewswire/ -- Bertelsmann Foundation warns of extensive domino effects Greece's exit from the Euro bears the risk of kindling a wildfire throughout Europe and possibly even on an international level and may result in a worldwide economic crisis. Countries affected would include not only Southern European nations or EU members, but also the USA, China and other emerging countries. This was the conclusion reached by a national economic assessment conducted by Prognos AG on behalf of the German Bertelsmann Foundation, which analyses the financial consequences and, for the first time, also possible declines in growth for Germany as well as for 42 of the most important industrial and emerging countries until the year 2020 in the wake of a departure from the Euro by Greece or other crisis-stricken countries. The scenario calculations present the authors of the study with some serious concerns. For Greece, the scenario would involve national insolvency, a massive devaluation of the new Greek currency, unemployment, falls in demand and many other problems, effects that will quickly show their mark on its direct trading partners. In the Southern European country alone, the ensuing losses of growth would amount to 164 billion euros or 14,300 euros per person by the year 2020.