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Greek exit not fatal for euro zone: ECB's Honohan

However, he agrees it would be a knock to confidence for the euro area as a whole

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Reuters Tallinn

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

"Technically it can be managed but it would be a knock to confidence for the euro area as a whole and would add to the complexity," he told a conference in the Estonian capital.

"It is not necessarily fatal, but it is not attractive."

European Commission Economic and Monetary Affairs Commissioner Ollie Rehn said leaving the euro zone would be bad for Greece and Greek cities.

 

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First Published: May 12 2012 | 3:53 PM IST

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