
During the heyday of the sovereign debt crisis, speculation over whether Greece would abandon the euro was rife. In the end, Greece defaulted and its economy shrank by one-quarter, but it did not leave the euro. Ever since, there has been concern that Italy’s elevated debt burden might lead to its own debt crisis, and a possible ‘Italexit’. Refresh the chart in your browser | Edit chart in Datastream Fathom’s proprietary indicators suggest that investors continue to see a high risk of default in Greece and a significant risk of both default, and euro exit, in Italy. However, drawing close comparisons between