Goldman's O'Neill says Greek default closer

ST PETERSBURG, Russia Fri Jun 17, 2011 10:18pm IST

Tourists are seen through a cafe's smashed windows after Wednesday's riots in Athens' central Syntagma (Constitution) Square June 16, 2011. REUTERS/Yannis Behrakis

Tourists are seen through a cafe's smashed windows after Wednesday's riots in Athens' central Syntagma (Constitution) Square June 16, 2011.

Credit: Reuters/Yannis Behrakis

Related Topics

ST PETERSBURG, Russia (Reuters) - Greece will keep moving closer to default unless European Union policymakers stop sparring in public about its debt crisis, Jim O'Neill, chairman of Goldman Sachs Asset Management, said on Friday.

"It is like open theatre," O'Neill told Reuters Insider television in an interview at the St Petersburg International Economic Forum in Russia.

Asked if he thought Greece would default, he said: "I think the risk of it is getting closer unless European policymakers are a bit more sensible."

He urged European policymakers no to "keep on publicly sparring with each other, like some game theory between the ECB, the French and the Germans."

He said the risk of Greece leaving the euro was probably some way off and that Greece did "not matter economically".

But he warned that contagion did matter and that if Italy and Spain were badly affected it would be a "big problem".

He said the euro was unlikely to remain above $1.40.

"I cannot really see how it can stay above 1.40," he said.

(Reporting by Guy Faulconbridge, editing by Timothy Heritage)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

BACK IN JAIL

REUTERS SHOWCASE

Modi Hurdle

Modi Hurdle

Appointment of Arvind Subramanian as chief economic adviser hits Modi hurdle.  Full Article 

USL Board

USL Board

Diageo bars United Breweries from appointing independent director at United Spirits.  Full Article 

Amazon in India

Amazon in India

Amazon to sell packaged food and beverages in India - Economic Times.  Full Article 

iOS 8 Issue

iOS 8 Issue

iOS 8 causing Bluetooth connectivity issues - Apple news blog  Full Article 

NYT Job Cut

NYT Job Cut

New York Times to cut jobs as new products disappoint  Full Article 

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Monetary Policy

Monetary Policy

RBI not biased towards either raising or cutting rates - Rajan  Full Article 

Weak Demand

Weak Demand

Weak demand hits factory activity across Asia, Europe  Full Article 

Pimco Fund

Pimco Fund

Pimco Total Return Fund posts record $23.5 bln net outflow in Sept  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage