The European policy of “muddling through” the Greek debt crisis may be the best option, says Barclays Wealth, because it staves off the potential for contagion and avoids a potentially crippling rise in borrowing costs.

Kevin Gardiner, head of global investment strategy at Barclays Wealth, said critics of the bailout plan are mistaken: "Kicking the can down the road often attracts negative comments - but people forget that, for a borrower like Greece, time is money," he said.