George Osborne: Germany may demand Greek exit to save euro
Greece could be forced to leave the eurozone as the price for the survival of the single currency, George Osborne warned yesterday.
The Chancellor suggested that Greece's departure could be required to convince German voters that it was worth bailing out the stricken currency.
"I ultimately don't know whether Greece needs to leave the euro in order for the eurozone to do the things necessary to make their currency survive," he said.
He added: "I just don't know whether the German government requires [a] Greek exit to explain to their public why they need certain things like a banking union, eurobonds and things in common with that."
European officials are drawing up a range of emergency measures to prevent a financial meltdown if Greece crashes out of the single currency in the wake of Sunday's national elections.
The revelations came as the leader of Greece's far-left anti-bailout Syriza party, Alexis Tsipras, renewed his appeal to European leaders to relent in their demands for savage public spending cuts.
Attempting to soothe the nerves of voters concerned that a Syriza victory could herald Greece's exit from the euro, Mr Tsipras said he was optimistic about renegotiating the country's rescue deal.
But European officials are working on measures to limit the fallout from a Greek exit including limiting the amount Europeans can withdraw from cash machines, restrictions on the movement of capital and a temporary suspension of the Schengen pact that permits free movement of people across the continent. "It is sensible planning, that is all," a source told Reuters.
Greece will vote for a second time on 17 June. The most recent surveys showed Syriza to be neck and neck with the pro-bailout New Democracy party. Yesterday, Mr Tsipras used the Spanish bailout, which was agreed with less stringent conditions, to push his message that Greece was being unfairly singled out.
- 1 The black and blue dress: Makers considering a white and gold version
- 2 Husband and wife die holding hands within hours of each other after 67 years of marriage
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 The remarkable archaeological underwater discovery that could open up a new chapter in the study of European and British prehistory
- 5 Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
Boris Nemtsov shot dead: Putin critic may have been murdered by Islamic extremists, says president-led committee
Stephen Hawking's wife Jane Wilde on their marriage breakdown: 'The family were left behind'
British are sexually uptight, dirty and drink too much – according to Spanish book
PornHub turns masturbation into energy in bid to save the planet
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
£9 per hour: Recruitment Genius: This role is based within a small family run ...
£28000 - £32000 per annum: Recruitment Genius: This Design and marketing agenc...
£46000 per annum: Recruitment Genius: This property investment firm are lookin...
£18000 - £35000 per annum: Recruitment Genius: This company specialises provid...