2015-03-20

Domino

UK chancellor George Osborne said on Monday that the current standoff between Greece and the eurozone poses “the greatest risk to the global economy” after meeting Greece’s New Finance Minister Yanis Varoufakis at 11 Downing street.

The chancellor also warned that the continuing crisis between Greece and the other common European currency members presents “a rising threat” to the UK economy.

“We had a constructive discussion, and it is clear that the stand-off between Greece and the eurozone is the greatest risk to the global economy,” Osborne said after the 45-minute talks.

“I urge the Greek finance minister to act responsibly but it’s also important that the eurozone has a better plan for jobs and growth.

“It is a rising threat to the British economy. And we have got to make sure that in Europe, as in Britain, we choose competence over chaos.”

Osborne’s comments echo those made by US President Barack Obama, in which he suggested that Greece needed growth rather than more austerity.

“You cannot keep on squeezing countries that are in the midst of depression,” when CNN’s Fareed Zakaria asked him about the case of Greece. “At some point, there has to be a growth strategy in order to pay off their debts and eliminate some of their deficits.”

The Greek Finance Minister did not speak to the press after the meeting.Grexit would be 'beginning of the end' for Europe, warns EU chief.

A disorderly Greek exit from the eurozone would mark "beginning of the end" for the currency union and spark a dangerous domino effect of market contagion across the continent, according to the EU's top finance commissioner.

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