Should UK Investors Be Concerned About Greece?

MARKET REACTION: Greece, its astronomical debt and its potential exit from the euro has filled the news headlines in recent months. But what effect does it all have on UK savers?

Emma Wall 1 July, 2015 | 4:16PM
Facebook Twitter LinkedIn

 

 

 

 

Emma Wall: We're just wondering about how concerned real people are about what's going on in Greece.

Speaker: I think everyone should be concerned. The things that happen in our neighborhood impact all of us and the kind of financial changes that could occur in that country could have knock-on effects that have far reaching consequences for all of us here in Europe.

Speaker: As a European and as a citizen of Europe and the world, I think we should all be concerned especially on the structure of the European Union.

Speaker: I don't think particularly. I think people only really see Greece as a holiday destination unless you originate from there and you actually live in here. People that I've spoken to, don't necessarily bring it up in conversation, to be honest.

Speaker: I find it really interesting that there has been a call for a referendum because that basically means that the people officially are saying something as opposed to the politicians actually working out a deal amongst themselves. And it could really be something that then later on is used as like proof, like, okay, the people said yes or no. So, it sort of becomes like an official thing that is being used then later on in a negotiation. So, I definitely thing this could be like a turning point and it's really interesting thing that is happening at the moment.

Speaker: The breakdown shows that obviously a lot of the lenders are sort of Euro countries. So, the effects might not be as well felt here as it is across Europe. But it should be of concern. I mean, ultimately, the measures that will have to be put in place for Greece assuming there is going to be a restructure of the debt is going to cause serious problems to their economy and that will have an impact on us ultimately with trade, with tourism, of course, et cetera, et cetera.

Speaker: We go over there for holidays, don't we? So, with my money we have to spend to over there and finance our holidays.

Emma Wall: It will be cheaper if they leave.

Speaker: A lot cheaper possibly, yes, that's right. So, on the tourist industry also in their country is going to affect them economically quite a lot.

Speaker: Well, I used to live in Greece and have lots of Greek friends and any outcome that we bear for the Greek people would be devastating.

Speaker: From a social point of view with all of the things that are going on in other parts of the world social unrest in Europe isn't to be something that anybody would want, but I think the fact that people could lose all of their savings is something that everybody can align to.

Speaker: I think if I was living there and I was – my heritage was, obviously, Greek, I would be worried. I would definitely be worried especially if tourism was my main source of income into the country, definitely.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Emma Wall  is former Senior International Editor for Morningstar

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures