Germany prepares for Greek default,1518,785482,00.html

(Full article appears in Spiegel Online International tomorrow.)

If it happens, Greece may or may not stay in the euro zone. The EU presently does not have a mechanism to allow countries to leave the common currency area.

In either case,  the Greek default may bring about a credit crunch with banks holding on to cash to cover the loses. This applies mostly to French banks which are very exposed in Greece but effects are likely to be felt world-wide.