The chief executive of Wall Street investment bank Morgan Stanley does not expect Greece to leave the euro zone, he told a German paper, but warned of the political impact that would follow such a scenario.
“I don’t think that Greece will leave the euro zone. There will be a compromise, the risk is too high,” James Gorman told weekly Welt am Sonntag in an interview published on Sunday.
“The European Union has brought enormous benefits to its members over the past 50 years. Compared to this, the costs of a restructuring of Greek debt is small. To me this path makes much more sense that letting Greece fall,” he added.
Euro zone leaders will attend an emergency summit on Monday, hoping to thrash out a plan with Athens to provide Greece with funds to prevent it defaulting on its debt.
If Greece does default on its debts, it could require capital controls that might lead to its exit from the euro zone or even the European Union itself.
Gorman said that the economic consequences in such a case would probably be manageable and the risk for the global economy limited, adding all stakeholders had had time to prepare.
“The political consequences, however, are unpredictable. There is no experience. I would be careful, I wouldn’t let it happen,” he said.