Volkswagen’s finance division, VW Financial is considering the impact of a possible exit of Greece from the currency union, Frank Witter Chief Executive of VW Financial told Automobilwoche.
The company is running possible scenarios and aims to protect itself against major turmoil in the euro area.
“We clearly expect that the euro will continue to stay,” Witter said. “But whether or not all current member states will stick with it is an open question.”
“We’re busily pondering scenarios on the euro” to ensure that our risk-hedging will be able to contain a possible increase in market volatility, the newspaper quoted Witter as saying.
The poll of 4,000 people in Germany, France, Spain and Italy, the four largest nations using the currency, showed 78 percent of Germans and 65 percent of French people wanted Greece to leave the euro zone, with 51 percent in Spain and 49 percent in Italy also backing a Greek exit.
In all four countries, majorities said that loans to Greece will never be paid back, even as most said that not saving Greece would increase the euro region’s difficulties.
Analysts at New York-based Citigroup said there’s a 50 percent to 75 percent chance that the nation will exit the euro region in the next 12 to 18 months. Their view hasn’t changed since before the June 17 election.
The Economies of Spain and Greece are in ruins, Italy is set to join them, and if they all stay in the EU the Euro may hit 89c USD according to Economist Shayne Heffernan.
Greece is at the epicenter of the eurozone debt crisis and its government has introduced harsh austerity measures in return for an international bailout package that has kept the debt-stricken country’s economy afloat for two years.