Greece’s rapid descent into economic turmoil amid unprecedented debt levels has roiled global markets and left politicians in Greece and Europe scrambling for last-minute solutions.
Having
failed to pay a bailout tranche of €1.5bn on Tuesday, and preparing for an
uncertain referendum on a new austerity package, Greece could soon take a step into the unknown, leaving the Eurozone and possibly
the EU, notes ICIS in a latest report.
All eyes are on the spill-over effect on Greece’s neighbours and its impact on the energy sector. The value of the Euro slumped against the
Pound as uncertainty over the impact of a Grexit on the Eurozone’s economy weighed
on the single currency. At the start of this week, a downwards move ensued in
the British gas market as traders backed by euros
retreated from the market. Volatility hit the European emissions market on Monday, with higher traded volumes
reflecting concerns over a Grexit.
On Monday all banks closed, triggering major concerns over Greek companies
being able to make payments
for electricity delivered and leaving companies looking to strike deals with foreign
counterparties in a limb. If more foreign companies start to reel in the risk
and exports into Greece weaken, the system could face some tightness. So far the pool price has not been volatile with weak consumption
keeping any strength at bay. But if the temperatures begin rising, the country
stands exposed tomajor spike prices.
