Greek eurozone exit would not necessarily be fatal, says Honohan

A Greek exit from the eurozone would damage confidence in the single currency bloc but not necessarily be fatal, Central Bank chief and European Central Bank policy-maker Patrick Honohan said at the weekend.

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.

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