Greek standoff with euro zone a risk to Britain’s economy – Osborne

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SHAFAQNA – The standoff between Greece and the euro zone over Greek debt is raising the risks to the British economy “every day”, Chancellor George Osborne said on Sunday, warning a Greek exit from the euro would cause “real ructions” in his country.Osborne, who said Britain was stepping up contingency planning for any Greece-related instability, said it was vital that the crisis be contained.

“This stand-off between Greece and the euro zone is increasing the risks every day to the British economy,” Osborne told BBC TV’s Andrew Marr Show. “That’s why I’m going tomorrow to the G20 to encourage our partners to resolve this crisis.”

The new left-wing government in Athens has rejected the austerity that was forced upon the country by an EU/International Monetary Fund bailout and instead says it wants a “bridge agreement” until it has negotiated a new deal.

Greece said on Saturday it had no short-term cash problem and would hand its EU partners a comprehensive plan next week for managing the transition to a new debt deal.

The EU has warned time is running out to avoid a financing crisis in Greece.

Osborne’s Conservative Party faces a close national election on May 7, one of the most unpredictable in modern British history, and has tried to use the Greek crisis to persuade voters it is the only party capable of providing the necessary economic stability to continue rebuilding Britain’s economy.

Osborne said a Greek exit from the single currency would create instability in European financial markets and cause “real ructions” in Britain too.

“We’ve got to make sure … that we have an international effort to resolve the stand-off but here in Britain we step up our contingency planning to prepare for whatever is thrown at us,” he said.

Source : Reuters.com

 

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