Australia not immune from fallout: expert

AUSTRALIA isn’t cushioned from the potential economic fallout from Greece, a senior academic believes. Professor Bruce Wilson, director of the European Union Centre at RMIT University in Melbourne, believes Greece may not leave the EU, but is likely to leave the eurozone if there is a “no” vote at Sunday’s referendum.

“We are not cushioned from it because clearly Europe is a very significant trading partner for Australia,” Prof Wilson said.

“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.”

The other impact had been a “reverse migration” of Greeks who lived in Australia, moved back to Greece and are now moving back to Australia.

Prof Wilson said there was no way Greece could repay its debt under existing austerity conditions.

“I think inevitably there will be a compromise found, but the point is at what stage?” he said.

International institutions would need to recognise the debt should be adjusted and restructured, but this was the one thing that creditors were not offering, Prof Wilson said.