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Just how serious is the threat of a euro-zone default?

With the euro-zone set to enter its worst recession in the post-war period, concerns about the prospect of a member state defaulting on its debt have rocketed and even prompted speculation of a euro-zone break-up. But while there is no doubting that the region’s public finances will deteriorate sharply, it will require a particularly nasty set of shocks to prompt a default.

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