As the debt crisis will affect the British

The head of the Bank of England Marvin King argues that the UK will not be able to go through the debt crisis without losses. According to Mr. King, “Hurricane on the continent is dangerous for the British Isles.” British Prime Minister David Cameron called on European leaders to think about what would happen if the euro zone will fall apart. But as the crisis affects ordinary people in the UK?

The euro is falling against the pound sterling. British exporters are suffering because of this, however, travelers benefit from the strengthening pound. Today, travel to Europe are the most profitable for the last three years due to the fall of the euro against the pound sterling.

According to the Association of British Travel Agents, about 5% of tourists who travel outside the UK, will visit Greece this year. If Greece will come from the eurozone and return to the treatment of drachma, British travelers will benefit even more. This is associated with a high probability of strong devaluation of the drachma in the first months after its introduction into circulation.

Tourists from the UK need not worry that they will not pay for the goods or services in case of failure of Greece to the euro. Probably the drachma and the euro will be simultaneously accessible in this country for several months.

At the end of 2011, 5410 British citizens permanently residing in Greece. Most of them are pensioners who receive severance pay in sterling. These people are also benefiting from appreciation of the pound against the euro, or the possible issuance of the drachma.

Britons living in Greece, should keep most of their funds in pounds sterling, changing them into the euro or the drachma in small batches. The probability of a sharp rise of the euro against the British pound remains low, while the worsening debt crisis could lead to the collapse of European currency.

Britons who own assets in Greece (real estate, timeshare), will record the loss in the event of an immediate sale of their property. After passing the property to rent on the condition of payment in euros, the owner will reduce their losses due to falling real estate prices. However, in the case of the introduction into circulation drachma, hire the euro may become too expensive for the residents of Greece. This risk should be considered when deciding whether to buy or sell assets in Greece.