Today's Coming Crisis Movie

Thursday, May 31, 2012

We're not immune to euro's woes: Treasury, Australia

Treasury boss Martin Parkinson believes Australia's prospects are very good while warning the local economy is not immune from a further deterioration of the European crisis.

He also painted a grim picture for Greece, if it left the euro zone.

"Every debt that is denominated euros would jump dramatically, its banking system would collapse," he told a Senate estimates hearing on Thursday.

It would also be hard to see how Greek firms would not be "pushed to the wall".

"So within Greece, one could see a very, very serious fallout."

He described the crisis in Europe as "quite fluid" but one that has had little impact on Australia's trade or banks at this stage. Read More