Australia May Face Problems Due to Greek Economic Fallout

sydneyThe Australian Associated Press spoke with senior academic Professor Bruce Wilson, director of the European Union Centre at RMIT University in Melbourne, who believes that Australia will not remain unaffected by the Greek economic fallout.

“We are not cushioned from it because clearly Europe is a very significant trading partner for Australia,” said Professor Wilson, adding that while Greece may not leave the European Union, the country is likely to exit the Eurozone in case of a “No” vote in Sunday’s referendum.

“The broad impact on the world stock markets is going to be erratic and short-term, but the ongoing issue for Australia will be about trade and investment opportunities,” he added.

Furthermore, Australia will also face a huge problem due to the mass migration of Greeks to the country. Many Greek-Australians opted to return to their homeland over the last few years, however, now with the current situation and the political and financial turmoil, they are likely to move back to Australia.

Professor Wilson also added that a compromise will eventually be reached but the only question is at “what stage?” The institutions will inevitably have to recognize that the debt is unsustainable and therefore needs to be adjusted. “There was no way that Greece could repay its debt under the existing austerity conditions,” he said.

However, Australian travelers planning to visit Greece will not face any problems since the government has already formed plans for their safe return in case the situation gets out of control.