4 November 2011 Last updated at 12:22 ET

Eurozone crisis: The possible resolutions

What could happen next?
1. Countries muddle through	2. Economy after economy defaults	3. Greece exits the euro
Source: National Institute of Economic and Social Research, UBS, Robert Peston
Leaders introduce measures on a gradual basis to try to contain the problem	A default in one country, such as Greece, forces other vulnerable eurozone economies to default	Allowing or forcing Greece to leave the eurozone
Likely impact	Likely impact	Likely impact
Uncertainty and risk remain and the restoration of market confidence is delayed	Once Greece defaults, other countries become more likely to default as investors become worried about risks in the region. Other European banks and pension funds that hold large amounts of Greek debt would also face losses	Greek devaluation would be certain - as investors would attach a high risk to the country - and default would be likely
The lack of confidence has a negative effect on borrowing costs and growth, not just in Greece and other eurozone countries, but elsewhere	Portugal is the most likely next candidate for default. Other vulnerable countries include Irish Republic, Spain and Italy	A run on Greek banks would follow, meaning a collapse of the Greek financial system. International creditors would incur huge losses, Greek businesses would go bust, and the Greek people would face high inflation
Recession becomes a near certainty in Japan, Greece, Portugal, Italy and Spain. The probability of a recession in the UK rises to about 70%	Defaults by several eurozone countries would make a generalised banking crisis likely	Other possible consequences are mass emigration, especially of skilled labour, towards other EU countries offering higher wages. There could also be new barriers to trade. Overall, UBS estimates leaving the euro would cost every Greek person up to 11,500 euros in the the first year
For the time being, the G20 countries have agreed to boost the resources of the International Monetary Fund to support struggling eurozone economies, such as Greece	In order to avert such a damaging outcome, the European Central Bank might need to commit to lending to vulnerable governments	On the positive side, defaulting on external debt could act as a boost to the economy, as it would reduce the debt burden of the government. Greece may also see inflows of foreign capital as investors identify opportunities for profit by investing in assets priced in the newly devalued Greek currency