When we consider the problems that would occur if Greece defaults, we have to look at how this would affect the lender countries. Large banks in Germany, France and England have propped up Greece with loans. Greece is not an insignificant economy and it’s failure would send ripple effects throughout the world, think “too big to fail”. They are also intricately linked to Greece through the European Union (EU). Many think that if Greece defaults, other members might default as well. The Wall Street Journal stated, “The decision by Greek Prime Minister George Papandreou to shelve the poll capped a tumultuous few days that thrust Athens to the brink of political chaos and forced Europe’s leaders to contemplate Greece’s exit from the single currency.” Source That brings us to the other major issue. Greece might pull out of the Euro as it’s national currency. As the seventeen member nations of the EU consider the possibility of Greece rejecting the euro the fear is that other member nations may also follow suit. This would cause a major destabilization of the remaining EU member’s currency and ultimately their economies.