Would a Greek exit be expected to have a domino effect, or will it be possible to isolate Greece?
This is what concerns EU leaders most. Their answer is that the European Stability Mechanism (ESM) â€“ the rescue fund which will be operational in July and will contain â‚¬500 billion â€“ will be there to bolster other struggling European economies.
But the fears among investors are still there.
â€śA Greek exit sets a dangerous precedent,â€ť says Jane Foley, senior foreign exchange strategist atRabobank in the City of London. â€śHuge amounts of investors are trying to get out of Spanish bonds right now, because they fear that if Greece goes, Spain will be next.â€ť
Consequently, the interest rates for Spanish 10-year bonds climbed to over 6 percent this week.
What EU policy makers have to do now, says Ms. Foley, is reassure the world that Greece is a one-off. â€śIf Greece leaves unilaterally and in a more or less orderly fashion, contagion might be avoided.â€ť
Given the social unrest Greece is already experiencing, and given the capital flight taking place right now â€“ according to President Karolos Papoulias, Greek citizens withdrew â‚¬700 million from banks last week alone â€“ an orderly exit is far from certain.