When asked what are the possibilities of Greece or others leaving the Euro zone, Mr. Mundell said: “Some arrangements could be made for them to do it, but the question is, what policies are going to lead to improvements afterwards. The basic problems that those countries have are structural. So if they leave the Euro zone, they're still going to have to make the same kind of adjustment. And they'll be in a much worse state and may set them back 5 or 10 years".
Mr. Mundell does not rule out a default or a partial default in the Euro zone within the next 18 months, saying: “I think in the next 18 months, everyone is still going to be in the Euro zone, however we may have one or two restructurings, partial defaults. If you were doing a big resolution now, you would get that all of a sudden. The only three countries exposed to that in the forefront are Greece, Ireland and Portugal”.
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