Greece is headed towards default, and experts now are concerned about the timing. The other countries in the European Union are creating conditions under which it could default in an organized manner, rather than total collapse. To this end, they are building a “firewall” that would protect banks and other nations from the fallout of Greek default, in order to prevent a crashing of global financial markets.
In spite of promises that it will meet its obligations and avoid default, the debt level in Greece is unsustainable. In addition, the country has been in an economic recession for years. A lingering question now is what the fallout of default could mean. No euro area nation has ever defaulted, and it is unclear what Greece could do to boost its economic situation following a default.
