Aus­tralia not im­mune from fall­out: ex­pert

Townsville Bulletin - - NEWS -

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.

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