Eurozone finance ministers are set to hear new proposals on a bailout package from the Greek government after the country voted ‘no' to austerity on 5 June.
Leaders are due attend a summit in Brussels in a bid to negotiate new terms between Greece and its creditors, although a solution is unlikely to be reached today.
Analysts have raised expectations of a Greek exit from the single-currency but say this scenario would not impact too heavily on the recovery taking place in the area.
Experts previously warned that a Grexit could have consequences for UK pension schemes as investors sought safety in gilts.
JP Morgan Asset Management chief market strategist Stephanie Flanders (pictured) said the spread between periphery and core sovereign borrowing costs was far below previous peaks.
But she said the European Central Bank (ECB) was likely to experience heavy losses in the event of a Grexit, which would also raise geopolitical concerns about the country's membership of the EU and NATO.
Flanders added: "All that said, however, we do not believe the crisis poses major immediate risks to peripheral economies, the European financial markets or the eurozone recovery, all of which are now much less exposed to and better equipped to deal with Greek contagion than they were in 2011 and 2012.
"In theory, at least, the ECB also has much more effective tools available now to deal with any tightening of financial conditions that result from the Greek vote. Policymakers have signalled previously that they stand ready to make use of those tools, should market conditions warrant it."
Columbia Threadneedle Investments head of asset allocation Toby Nangle said the group was working on the basis that Greece would miss the deadline for its repayment to the ECB on 20 July.
This would result in the circulation of a secondary currency as the country would be cut off from emergency liquidity assistance, Nangle said.
He added: "With regard to sentiment, the question we have continually asked ourselves has been to what extent developments in Greece negatively impact business confidence, consumer confidence and credit conditions elsewhere in the eurozone.
"We continue to forecast a pick-up in European economic growth and see no evidence that these important measures of sentiment that inform economic behaviour have been dented sufficiently to knock our positive expectations off-track.
"If we see evidence of this, we will need to tread more carefully still with investment positions."
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
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