JPMorgan, Barclays see Greek exit as likeliest scenario after referendum

London

ECONOMISTS from JPMorgan Chase & Co to Barclays plc have made a Greek departure from Europe's monetary union their base scenario after the country's electorate rejected the austerity needed to secure international assistance.

"Although the situation is fluid, at this point Greek exit from the euro appears more likely than not," Malcolm Barr, an economist at JPMorgan in London, said in a report to clients on Sunday, adding it could come "under chaotic circumstances". Economists will be reexamining the odds on Greece's membership of the euro after voters used a referendum to balk at proposals for more spending cuts and tax hikes from its creditors. Undermining their projections is the fact that many had predicted the Greeks would back the bailout pact.