FINANCE directors expect Greece to get booted out of the eurozone despite Europe’s finance ministers approving a further €130bn (£110bn) bailout package for the country.
Greece’s cabinet on Friday approved a €100bn debt write-down as part the eurozone rescue plan. However, a straw poll of delegates at the Economist CFO Summit the previous day revealed that finance directors are almost unanimous in their expectation that Greece is on the way out of the euro. Around two thirds of the room expected that another country will follow Greece out the door some point in the future.
However, a Greek exit from the euro should not precipitate an exodus of business from the country. Luca Zaramella, senior vice-president, finance, at Kraft Foods Europe, told delegates that he looks at Greece’s net monetary position every day but that it shouldn’t impact long-term strategy.
Businesses should not exit countries “from one day to the other” he said, citing the 1997-99 monetary crisis in Argentina as a reason why FDs should take the long view. “The position in Argentina is very good. It is clear in consumption is going up.”
The City could face huge job losses over Brexit, hears Treasury Select Committee
Lobby group sets out key priorities for Brexit negotiations
Most European business chiefs see the UK’s decision to leave the EU as a threat to business that will affect profits, according to new research from RSM
Falling profits and governance plans still up in the air at Sports Direct, as interim finance chief's team is boosted