All eyes on Greece

The result of tomorrow’s election in Greece could make this a particularly momentous weekend for the eurozone, the rest of the EU and the world economy in general.

Should Syriza leader Alexis Tsipras prevail, the EU rescue package for Greece, and the tough disciplines it entails, will be rejected. This, it seems, will exclude Greece from the euro and at that point we would enter uncharted waters.

One of the immediate consequences may be a two-tier euro or a two-tier, two-speed EU. How our banks, Spain’s banks and Italy’s banks would deal with the inevitable contagion might be a mystery but it would certainly be difficult for millions of people to live their lives in what they imagine is the normal way.