European leaders, including the Taoiseach Brian Cowen, are gathering in Brussels to discuss whether to bailout Greece.

The country’s edging towards the brink of financial collapse, and has plunged the euro into its biggest crisis since it was launched ten years ago.

Greece’s deficit is more than four times higher than eurozone rules allow.

Speaking to Breakfast on Newstalk, UCD Economist Moore McDowell explains the consequences for the rest of Europe if Greece defaults on its loans

“A lot of financial institutions around Europe have Greek loans in their portfolio; the French, Germans and the Swiss who are linked to the Euro are particularly exposed” he said.

“So if Greece defaulted, this would have a knock-on effect right through the financial sector in Europe” he added.