After fading into the background during the late summer, the prospect of a sovereign default by a European government has resurfaced. One view – taken up in the attached report and article – is that some form of default in Europe is highly likely. At today’s FUBar, we take a look at this argument and related issues. Should we be concerned about a European government default in the near future? Is it in the best interest of some European countries to default? Can deeply indebted European countries replicate the Canadian story of 1995-2005? What will happen if a default does occur?
