As the threat of Greece exiting the euro looms closer, GTR talks to Capital Economics senior emerging markets economist William Jackson about the potential consequences of a Grexit on the region.

Jackson explains that Bulgaria and to a lesser extent Romania would be the first to suffer, due to their trade and financial ties with Greece – some Greece banks with subsidiaries in these countries could cut funding as a result of the exit.

However, he adds that Europe is much better prepared for a potential Greek exit than it was in 2011, when that possibility was first mentioned: trade and financial ties with the country have been reduced significantly, and the European Central Bank seems “more willing to act”.