A Greek flag flies outside the Athens Stock Exchange. Picture: AP Photo/Petros Giannakouris Source: AP

Professor Bruce Wilson, director of the European Union Centre at the Royal Melbourne Institute of Technology, believes Greece may not leave the European Union, but is likely to leave the eurozone if there is a “no” vote at Sunday’s referendum.

“We are not cushioned from it because clearly Europe is a very significant trading partner for Australia,” Prof Wilson said.

“The broad impact on the world stock markets is going to be erratic and short-term, but the ongoing issue for Australia will be about trade and investment opportunities.”

The other impact had been a “reverse migration” of Greeks who lived in Australia, moved back to Greece and are now moving back to Australia.

Prof Wilson said there was no way that Greece could repay its debt under existing austerity conditions.

“I think inevitably there will be a compromise found, but the point is at what stage?” he said.

International institutions would need to recognise that the debt should be adjusted and restructured, but this was the one thing that creditors were not offering at present, Prof Wilson said.

Meanwhile, the government confirmed it had contingency plans to assist Australian travellers in Greece if the banking and security situation in the cash-strapped country deteriorates.

There have been protests in Athens ahead of the July 5 referendum on the terms of fresh austerity measures proposed by creditors to deal with its massive debt bill.

The nation missed a payment to the International Monetary Fund earlier this week.

“We are closely monitoring the impact on both Australian tourists and residents in Greece and have contingency plans if the situation deteriorates,” the Department of Foreign Affairs and Trade said in a statement on Thursday.