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Jakobsen: Why the Greek problem won't be solved

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Saxo Bank's Chief Economist, Steen Jakobsen, says that even if a deal between Greece and its creditors is struck, the problem isn't solved. Debt refinancing will be the first issue, with the country needing a significant discount. But how can the country secure that, asks Jakobsen, when the government is unwilling to bring in significant reforms?

Steen also expects an election to be called within weeks followed by a referendum on continuing membership of the Euro. But the arguments have become too emotional, he says, and not about the economic reality.

So what impact does Greece have on the financial markets? Zero impact in the long-term, he says, but clearly much more in the short-term as we can see over the last few days.