Why Britain Won't Be the Next Greece

In some ways, for Britain to become the new Greece all that is necessary is for Greece to remain the old Greece. This is, of course, because of the malign magic of "contagion." We may or may not have a worse fiscal position than the Greeks – I'll return to that – but we don't need to be profligate borrowers to catch the Greek disease. The Germans, Swedes and Norwegians – with the strongest public finances in Europe – also will catch it. And it will be very nasty indeed. Angel Gurria, the secretary general of the Organisation for Economic Co-operation and Development (OECD), said the other day that "this is like Ebola." If anything, he is downplaying the threat.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.