By Andrew Smith, Chief Economist

Just a few years ago a eurozone breakup seemed inconceivable but ‘no bailout, no default, no exit’ no longer applies. After two bailouts and a debt restructuring, policymakers are openly discussing a Greek exit from the euro and financial markets are attempting to price it in. The UK may not be in the euro club, but that rather misses the point: we would not be immune from the fallout. For while the direct economic effects of a default and euro exit by a small country such as Greece would be limited, it is impossible to predict the ramifications of the ensuing financial disruption, which could be extremely severe.

By Fiona McDermott, Partner for KPMG’s Business Modelling Group

The majority of business leaders in Europe and the UK now think that one or more Eurozone countries will default on its sovereign debt this year, according to research by KPMG. Many UK businesses are debating whether the Eurozone crisis could be another Y2K and what the real impact on businesses profitability and cash flow might be. But only a minority of businesses are currently making contingency plans for such an event, according to our research. My view is this is not a theoretical debate; the market is already changing and creating a different business environment.

By John Griffith-Jones, UK Chairman of KPMG LLP

When the European Union launched its plans to reform the audit market across 27 countries, the proposals referenced the word ‘quality’ no less than 113 times. Robust audits were held to be the key to re-establishing trust and market confidence following the 2008 financial crisis.

By Oliver Tant, UK Head of Audit
The last couple of days’ news has led me to reflect on the difference between unethical behaviour and perceptions of unethical behaviour – an issue that continues to rear its head for both politicians and bankers.  I wonder if we auditors, too, should be doing some soul-searching and, if we did, what we’d find.