Former Reserve Bank governor Don Brash says the elections in France and Greece could be the beginning of a trainwreck for the eurozone, which would drive down export prices in New Zealand.
Dr Brash, who has also led the National and ACT parties, says there will be problems if France refuses to be bound by the European Union's fiscal pact.
He told Morning Report on Tuesday that New Zealand's export prices have already started to fall amid market uncertainty.
Dr Brash said the country is very dependent on the goodwill of the market, so it must ensure it maintains its confidence.
Prime Minister John Key also says events in Greece and France will have some impact on the New Zealand economy.
Mr Key says although trade with both countries is not particularly large, New Zealand's overall relationship with Europe is significant.
China's economy has been slowing as a result of the situation in Europe, which will impact upon New Zealand, he says.