German Chancellor Angela Merkel attempted to reassure nervous markets about the future of the eurozone as US President Barack Obama urged greater efforts to solve the EU debt crisis.
Ms Merkel warned that a Greek collapse and its exit from the single currency would have a domino effect and destabilize Europe.
Her comments came after her deputy raised the possibility of a Greek default, which sent markets into turmoil.
The German Chancellor told the RBB radio station: ‘The top priority is to avoid an uncontrolled insolvency, because that would not just affect Greece, and the danger that it hits everyone – or at least several countries – is very big.
‘I have made my position very clear that everything must be done to keep the eurozone together politically. Because we would soon have a domino effect.’
Peter Altmaier, a senior figure in German Chancellor Angela Merkel’s government, added: ‘The situation is very serious – more serious than some had thought.
‘Exclusion from the eurozone is not legally possible at the moment. That means the Greeks must decide themselves if they stay in the eurozone or an exit is better for them.’
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