Clegg warns of chain reaction' if Greece exits euro

Greek exit from the euro could set off a "chain reaction of uncertainty" which would result in a "grinding slowdown in economic activity" across Europe, Deputy British Prime Minister Nick Clegg has warned.

Mr Clegg dismissed arguments that Greece's economic woes and the instability in the single currency could best be served by a swift return to the drachma, insisting that "no-one rational" could want such an outcome.