The results of the latest elections in Greece may make it more likely that the country will eventually leave the eurozone. But such an exit would probably be more orderly than Greece's default, experts said.
Over the weekend, Greece was unable to pull together a cohesive government, as voters signaled their displeasure with the spate of harsh austerity measures thrust upon them.
That has increased the odds of a Greek exit from the eurozone. According to Citigroup analysts, the probably of a Greek exit, which they dubbed a "Grexit," is now as high as 75%.
Citi analysts said the election results highlighted the sharpest drop in public support for mainstream parties in decades and "underscores rising public opposition against austerity."
It also may throw into question the next round of bailout funding from the IMF, European Central Bank and European Union. More than €31 billion is slated to be disbursed during the quarter. If Greece fails to make progress, the so-called troika may withhold the money and Greece would run out of funding, say the analysts.
That could set the conditions for a eurozone exit in motion.
"[Greece] is not going to get pushed, but they might walk out," Citi chief economist Willem Buiter said at last week's Milken Institute Global Conference.
If Greece leaves the eurozone, presumably the drachma currency would make a comeback. That could prove to be a boon for the nation. Tourism could see a resurgence, especially if the exchange rates are favorable, and wages could be revived, boosting overall consumer spending.
Economist Nouriel Roubini thinks Portugal and Ireland may also find themselves restructuring their debt and could even wind up following Greece out the door, but none of that should prove disruptive to world markets.
"If a small country, like Greece or Portugal, exit, you can have an orderly divorce, but if that restructuring and/or exit hits Italy or Spain, effectively you could get a breakup of the eurozone," Roubini said. But he added that's an unlikely scenario.