Generate text that refutes this claim: A Greek default would have a negative domino-effect on other Eurozone countries.  A Greek default will leave tremendous shockwaves across the Eurozone. Investors will instantly become wary of default in Portugal, Spain, Italy or Ireland, particularly given the sudden nature of the Greek default. Consequently, huge volumes of capital will flow out of these countries and into other more secure ones like Germany and the Netherlands. [1] This will, in turn, heighten speculation about the danger of default of other Eurozone nations. Speculation of default is particularly dangerous because it drives demand for government bonds down. This leads to the interest payments on government bonds rising which in turn raises the interest rates governments need to pay on their outstanding debt. The new, higher payments governments must make on their debt increases their budget deficit % GDP ratio, thus making it more likely that the country will actually default. We thus see how increased fears about the future of Italy, Portugal, Spain and Ireland that will arise from a Greek default, will cause big problems and will put even more strain on the ECB and primarily Germany in providing financial support.  [1] Kapoor, Sony, “Viewpoints: What if Greece exits euro?”, BBC News, 13 July 2012,
ic policy eurozone crisis finance international europe politics government
The situation in Ireland, Italy, Spain and Portugal is not as extreme as that faced by Greece. It is therefore highly unlikely that a Greek default would have as severe a domino effect as the opposition suggests. Greece is the main source of political and economic uncertainty in the Eurozone, and their departure would ease the situation, facilitate investors and allow for the Eurozone to rally strongly. [1]  [1] Ruparel, Raoul and Persson, Mats: “Better off Out? The short-term options for Greece inside and outside of the euro”, June 2012, Open Europe, 2012