Will the euro area break up? What would be the effects if a country like Greece leaves the euro and adopts its legacy currency? How would this impinge on the UK?
A new drachma would be immediately devalued against the euro and sterling and the value of Greek assets would reduce significantly. Imports would cost more for Greece to buy but exports would become more competitive, including the cost of tourism to foreign visitors and Greece would become a cheap holiday destination. British retired people living in Greece and in receipt of a UK pension would see an increase in ...