This outcome might play itself out as a serious drag on European growth, with GDP growing at roughly half the average rate achieved over the last twenty years. A third possibility would be for financial contagion to affect emerging market economies.
In this instance, countries with financial and/or economic vulnerabilities would experience local currency asset sales, capital flight, and knock-on effects into confidence of consumers and businesses in the real economy. Such effects would very likely occur in the event of a financial and economic meltdown in Europe, but would not necessarily only come out of such a combination of circumstances.