It will take down Germany as well, if Greece falls it will take down everybody and kiss the Euro goodbye. I remember a time when Germany’s economy was a mess, a sudden removal of its export markets and over valuation of its currency will soon bring its economy back into line with the ‘bad’ southern states. But, I’d expect devaluation will help Spain.
Worse case the whole EU may collapse but I think that’s Euro-sceptic wishful thinking.
Hoping for a quick resolution is praying for disaster, they are dragging it out to reduce the damage; banks recapitalise, reduce the overall debt. I think its now inevitable with the world entering another recession, negative growth makes the debt rise.