"For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through default," Mohamed El-Erian, chief executive of Pimco, said in Taipei on Wednesday in a video conference.
The Greek government won a crucial vote of confidence late on Tuesday as it sought further financial aid from the European Union and the IMF to avoid the eurozone's first sovereign debt default.
Mr El-Erian did not identify the other economies he referred to. He has said Europe risks wasting money for nothing by pumping billions of dollars into the ailing economy.
"Nothing has been done to enhance growth," he said. "No single (Greek) indicator has shown strength. They are afraid a restructuring would hurt European banks."
However, he doubted a Greek default could trigger another global financial crisis: "Ireland, Portugal, Italy and Spain would have to be involved. But Greece is too small in terms of economic impact."
Horacio Valeiras, chief investment officer of fund firm Allianz Global Investors Capital (AGIC), predicted that Ireland and Portugal, countries that also received financial bailouts in the wake of the global credit crisis, will have to restructure their debts.
"We are not investing in Greece, Ireland, Spain and Portugal," he said at the press briefing. He sees default in Greece as "inevitable".
The real fight in Greece will come when the austerity measures face a vote by lawmakers by the end of the month.
The confidence vote in Athens came after a European ultimatum requiring the state to agree to a five-year austerity package of measures within the next two weeks or miss out on a €12bn tranche of aid money. Without the loan, Athens will run out of cash next month.
European officials are also considering a second bailout package worth an estimated €120bn that is meant to extend Greece's year-old €110bn deal and fund it into 2014.
"These next ten days are the most crucial in the last 30 years," Deputy Finance Minister Pantelis Ekonomou said in a radio interview.
The euro slipped against the dollar on Wednesday as investors who bought the single currency following the vote of confidence took profits, signalling market concerns that the eurozone debt crisis is far from over.
George Papandreou, the prime minister, made a dramatic plea to parliament on Wednesday: "We have a unique opportunity (to change the country)," he said. "If we falter, if we lose heart and squander it... history will judge us very harshly."
Greece's main unions plan to hold a 48-hour general strike when the new measures go to parliament.
Francois Baroin , a French government spokesman, welcomed the vote of confidence on Wednesday, adding: "We will not accept any payment incident, or default."
California-based Pimco (Pacific Investment Management Company), is based in California and is the world's biggest bond fund manager with nearly $1.3 trillion in assets under management.
Euro bank notes.  
Greek Prime Minister  survived a confidence vote by the Greek parliament late Tuesday night, thus allowing Papandreou to form a new cabinet  constituted to address Greece's severe financial debt crisis.  The vote's outcome is viewed as a measure of confidence in  the government's ability to resolve the problems of the  and  implement the stringent austerity measures  necessary for Greece to receive future  packages from the European Union (EU). 

Papandreou managed to face down internal dissent within his own  over the extremely unpopular austerity measures (he has said the measures are an issue of "life or death") and the final vote of 155 to 143, with two abstentions, matched Papandreou's 155 seats. Meanwhile, Greeks were angrily demonstrating  against the measures outside, throwing bottles at the parliament building as riot police stood by.

Following the confidence vote, Greece will be in a position to look for  further financial aid from the EU to avoid   on its enormous debt, but help from the EU is dependent on the real work that must be done first: the Greek parliament's implementation of the hugely unpopular austerity measures.

Government spokesman Elias Mossialos said in an interview with  before the vote that Greece will be unable to pay wages and pensions after July 15 if the government does not secure the EU financing.   

The vote came in the midst weeks of widespread anti-austerity protests and strikes in major cities throughout Greece, involving clashes between police and demonstrators angry with the proposed slew of layoffs in the public sector which are to accompany the Socialist cabinet's program. 

On Wednesday, , the biggest bond fund in the world, said it was unimpressed with Tuesday's vote of confidence, saying it believes Greece and perhaps other European economies will  ultimately default on their debts. , chief executive of Pimco, said, "Nothing has been done to enhance growth. No single (Greek) indicator has shown strength." 
 
"For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through ," said Mohamed El-Erian  in a video conference.

The euro fell against the dollar on Wednesday as financial markets indicated that the  is far from over.

George Papandreou gave an emotional speech to  parliament on Wednesday, saying "We have a unique opportunity (to change the country). If we falter, if we lose heart and squander it... history will judge us very harshly." 

Meanwhile, when the new austerity measures move to parliament for a vote,  Greece's major unions are planning to hold a 48-hour general strike.