How Europe plans to survive a Grexit
Greece's future in the Eurozone still hangs in the balance.
For all the talk of an extended bail-out programme, Athens' international creditors are still no closer to agreeing a deal with the new Syriza government.
The brinkmanship has led to Prime Minister Alexis Tsipras demanding the repayment of Nazi war debt and even raising the prospect of a vote on Greece's continued membership of the euro.
“If we were to hold a referendum tomorrow with the question, ‘do you want your dignity or a continuation of this unworthy policy,’ then everyone would choose dignity regardless of difficulties that would accompany that decision,” was Mr Tsipras's verdict over the weekend.
Leaders such as Angela Merkel continue to insist Europe will not countenance any member of the euro leaving the single currency.
But with Greece's cash crisis worsening by the day, and no immediate prospect of Syriza satisfying the demands of its lenders, the prospect of a Grexit is looming over the continent once again.
So should Greece become the first country to be ejected from the monetary union, could the rest of the bloc handle the repercussions?
Here's a breakdown of how Europe might be hit by a Grexit.
A wave of banking panics
The prospect of a Grexit triggering a systemic banking crisis has been drastically reduced as Europe's lenders have managed cut their exposure to the recession-hit country over the last three years.
Standard & Poor's calculate Europe's banks have shrunk their direct exposure to Greece to around €42bn from the €175bn peak it reached in 2008.
In particular, non-Greek banks have dramatically reduced their lending to the country after it underwent the biggest private bond restructuring in history in 2012.
Foreign banks direct exposure to Greece
Britain, Germany and the US account for 80pc of the direct exposure to Greece's banks, but this still "represents a very small proportion of each country's total banking sector foreign direct exposures" say S&P.
Specifically, only 0.56pc of Germany's banking sector, 0.36pc of the UK's and 0.34pc for the US system would feel the effects of Greece leaving the euro.
Combined with the financial backstops the Eurozone has put in place since the height of its crisis, a wave of banking panics of the type last seen in 2007 is unlikely to hit Europe in the wake of a Grexit.
By European standards, Greece is a small, closed economy which would likely exert a small impact on trade with its main European partners, according to analysis from Oxford Economics.
Outside of Cyprus, only Macedonia and Malta sell more than 2pc of their total exports to the country.
In the event that Greece's imports plunged by more than 50pc after its euro exit (following a dramatic devaluation of the drachma) export demand in Europe's three biggest economies - France, Germany and Italy - would only drop by 0.3pc to 0.5pc, calculate Oxford Economics.
Correspondingly, GDP would only be hit by around 0.2pc-0.3pc in these economies.
Containing the contagion
But for all the calculable elements of a Grexit, the consequences of financial contagion remain highly uncertain.
A failure to renew Greece's bailout in June would "shatter the illusion that membership of the euro was irrevocable" forcing markets to charge a corresponding risk premium on assets denominated in the single currency, warn James Nixon and Ben May at Oxford Economics.
Eurozone GDP would be 2.2pc below its current trajectory by 2016 in the event of full-blown market panic hitting the single currency.
Jitters would likely hit the remaining vulnerable members of the union the hardest.
In particular, highly indebted members would face the greatest squeeze as bond yields would start to climb back up to a higher, permanent "new normal" say analysts.
The threat of deposit flight from the banks could also escalate. This in turn would force lenders to rely on support from the European Central Bank and even resort to emergency funding as insolvency fears heightened. Eurozone authorities would then have to consider imposing capital controls as the only way to stem the losses.
With a government debt-to-GDP ratio of 133pc, the third largest economy in Europe could be in the direct firing line of market panic.
Italy's long-term funding costs could rise by 200 basis points, adding to its already burdensome debt stock, and inflating the budget deficit of more than 3.5pc, say Oxford Economics.
They also estimate that a combination of weak growth and anaemic inflation could see the country's debt mountain rise to eye-watering 145pc by 2024.
With Greece out of the Eurozone, the remaining struggling economies of southern Europe would likely face a choice of whether they should remain in the currency union.
Germany's Wolfgang Schaeuble - the Eurozone's disciplinarian - has called on all members to respect the rules of the union
With one member down the Eurozone could come to resemble a fixed-exchange rate system of the pre-Maastricht age, rather than a bona fide monetary union.
On the flipside, a Grexit could well force EMU's architects to move towards a more integrated union and finally end the "muddling through" approach that has characterised the last four years of crisis.