Latest News:  
Beijing   Thundershower    26 / 17 ℃  City Forecast

Home>>China Business

Greek exit 'needs clear response'

By Fu Jing, Wang Xiaotian and Li Xiang (China Daily)

13:42, June 13, 2012

Brussels must coordinate with Washington, Beijing and other global players on capital control measures if Greece exits the eurozone after the general election on Sunday, financial experts warned.

Eurozone finance ministers are reportedly considering a range of options, such as limiting cash withdrawals from ATMs, if Greece leaves the euro.

Brussels has denied that it is preparing such contingency measures for the worst-case scenario - the Grexit, or Greece exiting the euro.

When questioned by China Daily on whether the European Commission can confirm media reports that it is preparing contingency measures, Amadeu Altafaj Tardio, spokesman for Vice-President Olli Rehn, said: "We are not aware of any plan of that kind as reported by a wire service based on anonymous sources."

Rehn is responsible for economic and monetary affairs.

Several sources were quoted by Reuters as saying on Monday that the EU is considering measures, such as capital controls, due to political uncertainties in Greece.

The election may bring the left-wing party, Syriza, into power. The party has constantly spoken out against the austerity measures demanded by Brussels in return for bailout money.

The BBC ran a feature story on Tuesday analyzing how Greece could switch from the euro to its old currency, the drachma.

Opinion polls suggest that about 80 percent of Greeks want to stay in the eurozone.

Francois Heisbourg, a senior adviser with French think tank, the Foundation for Strategic Research, said it is "premature" to ask what measures the EU should take if Greece exits the eurozone and Europe should wait for the results of the election.

But Wang Jianye, chief economist at the Export-Import Bank of China, a major lender that helps domestic enterprises go overseas, said it is necessary for EU officials to get ready for a worst-case scenario.

But such "extreme" measures, if implemented, will backfire, because capital movement is the foundation for economic recovery, he said.

"The consequences would be huge. The US didn't turn to capital controls when it was trapped by the Lehman turbulence."

【1】 【2】

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. 4th Minorities Art Festival to open in Beijing

  2. Lanzhou MAC holds military transportation professional skill contest

  3. The thousand-year-old Tibetan paper

  4. Blue-green algae gathers in E China lake

Most Popular

Opinions

  1. China unlikely to undergo local govt debt crisis
  2. Plan to buy Diaoyu Islands a political farce
  3. Beijing Summit features five new aspects
  4. China’s courier industry primed for an overhaul
  5. Why China, US argue over PM2.5 data
  6. People's Daily Commentaries
  7. Nation needs private capital for resource demand
  8. Int'l board could give local stocks a run for money
  9. SCO is strategic choice for members
  10. Conditions not ripe for farm land privatization

What's happening in China

New system solves record number of criminal cases

  1. Foreigners to tell their Beijing stories
  2. Shanghai now costliest city on China's mainland
  3. Expats' donations 'help ease blood shortage
  4. Worries about EU's financial health send tumbling
  5. Agency to push ahead power price reform

China Features

  1. Beijing Summit features five new aspects
  2. A visit to Qiang Nationality in S.W. China
  3. 2012 West Lake Lotus Expo kicks off in Hangzhou
  4. Innocent photography: Sleeping baby
  5. People's Daily Online seeks English editor

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai