Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greek exit not fatal for eurozone, says ECB's Honohan

A Greek exit from the euro zone would damage confidence in the single currency bloc but not necessarily be fatal, Irish central bank chief and European Central Bank policymaker Patrick Honohan said on Saturday.

The prospect of a Greek euro exit has arisen after European countries said Greece cannot get more of the financial aid on which it is dependent if it does not meet the terms of its bailout. But parties backing the bailout programme have no majority in parliament after inconclusive elections last week.

"It (a euro exit) is not imagined in the legislation, in the treaties, but things can happen that are not imagined in the treaties, Honohan told a conference in the Estonian capital.

"Technically, it can be managed. It (a Greek exit) would be a knock to the confidence for the euro area as a whole. So it would add to the complexity of the operation until things settle down again. It is not necessarily fatal, but it is not attractive, he said.

He said everyone was working to avoid such an exit, including in Greece, and that if anyone thought about such a development they would view it as a very unattractive hypothesis for the rest of the euro area and a rather destabilising kind of event.

European Commission Economic and Monetary Affairs Commissioner Ollie Rehn said leaving the euro zone would be bad for Greece and Greek cities and noted that the size of the bailout had shown European solidarity.

"Greece is getting external aid in terms of loans or debt relief altogether equal to 177 percent of its GDP: 200 billion (euros) from the Europeans and the IMF in terms of loans and about 100 billion (euros) in debt relief from private creditors, he said.

Latvian Prime Minister Valdis Dombrovskis, whose own country successfully completed a bailout programme involving austerity measures equal to more than 10 percent of output, said his country would not have got any aid if there had been a parliament majority against the bailout.

"You need to have an exit strategy. That is the point, that is why the Greeks are frustrated, they don't see an exit strategy and that is why other countries are frustrated they also don't see an exit strategy, Dombrovskis added.

[Reuters]

ekathimerini.com , Sunday May 13, 2012 (01:57)  
Tourism targets rise ever higher
Horse race betting hurdle removed for OPAP
Revised GDP data confirm that Greek growth is near
Measures to reduce unemployment
Education minister calls for probe into predecessors reform plan
Following reports that a plan to reform the tertiary education sector launched in the spring of 2013 failed to lead to millions of euros in savings, Education Minister Andreas Loverdos on Mo...
Anti-racism bill goes back to Parliament
An anti-racism bill, foreseeing stiffer penalties for individuals and political parties that engage in racism or incite racist violence, is to be debated in Parliament on Tuesday following m...
Inside News
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
ANALYSIS
EUs three big problems all linked
The outgoing president of the European Council, Herman Van Rompuy, said at the weekend that his successor, Donald Tusk, currently Polands prime minister, faces three big challenges: the sta...
COMMENTARY
A great president
I fully understand the countrys need for political stability, a necessity which makes the election of a president by the current Parliament absolutely imperative. At the same time, however,...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Greek hoopsters go top of their group in World Cup
2. Tourism targets rise ever higher
3. Horse race betting hurdle removed for OPAP
4. Revised GDP data confirm that Greek growth is near
5. Measures to reduce unemployment
6. Peachy export data despite Russian embargo
more news
Today
This Week
1. Excavation work at Amphipolis reveals section of marble mosaic floor
2. A great president
3. Erdogan visits Turkish-occupied Cyprus
4. Greek economy shrinks at slowest pace since late 2008
5. Dont feed the zombies
6. Greek officials meet to fine tune strategy for Paris talks with troika
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.