Greece’s exit from the Euro is looking more likely by the day, and increasing numbers of analysts now believe that that may be the best way forward—at least for the Greeks, if not the rest of Europe. Many countries stand to lose significant investments should Greece bail on the common currency.A new piece in French daily Les Echos argues that France may have more to lose than any other European nation. This is partially due to its exposure to Greek debt. France currently holds nearly 65 billion euros in Greek debt, on top of a further 37 billion euros held by French companies. If Greece departs the euro and defaults on its debts, French losses could exceed 100 billion euros.And this doesn’t take into account France’s exports to Greece or French investments in the country, which are valued at more than three billion euros. France retains a large trade surplus with Greece amounting to 1.87 billion Euros.These figures help explain why President Hollande wants so badly to forestall a Greek exit from the euro. Bailouts may cost Europe a fortune, but the costs of letting Greece go could be far worse — and, from the French point of view, there’s another advantage. Germany will pay more money in to any new efforts to save Greece, but the benefits will flow disproportionately to France. Using German money to support French economic interests is exactly what many French politicians think the EU should be doing; Charles de Gaulle would be pleased.
France Most Threatened by Greek Euro Exit
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