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Originally Posted by Kymmy
Personally I don;t think it will.. The situation in Greece isn't about banking instead it's about one countries problem with not only their inability to structure their own tax system correctly but also their link to other countries via a shared currency. If anything it should improve Britain's standing and the pound as a single currency.
Britain though does need to take a step back, put their foot down and state that yes we're happy to be part of Europe but not as the rich uncle/aunt who is forever coming to the rescue of the smaller states.. I wonder if the way things are going that the EU will become a two tier system with France, Germany, UK (and maybe one or two more) cutting funding links with the lower group and to some extent isolating themselves from those countries that see the EU as a charity. The EU should be a "club" of disinction and of economic harmony and membership should be restricted to those capable of adding to the collective as well as benefiting from it.
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The crisis isn't directly about banking but many major banks have massive interests in Greece and if those look threatened then obviously there'll be some doubt about how bad the damage will be and whether or not their interests in Spain, Ireland, Portugal will go the same way. Confidence in the financial markets is key since nobody wants to invest money unless they have confidence that it won't be lost. Lack of confidence = lack of investment = lack of growth.
I thin the EU aleady is 2 tier with the likes of France and Germany doing pretty much what they like at times and the rest following on behind. Sadly, I feel we're all so closely bound now that there's no way out without real pain - the best we can do is not get any further in.