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Greek FinMin Varoufakis Warns of Grexit Contagion

varoufakisGreek Finance Minister Yanis Varoufakis said in an interview broadcast on Sunday that if Greece were to leave the Eurozone, there would be an inevitable contagion effect, according to Reuters.
“Anyone who plays with the idea of cutting off bits of the Eurozone hoping the rest will survive, is playing with fire,” he told Spanish TV channel La Sexta in an interview recorded 10 days ago.
“Some claim that the rest of Europe has been ring-fenced from Greece and that the ECB has tools at its disposal to amputate Greece, if need be, cauterize the wound and allow the rest of Eurozone to carry on,” he added.
“I very much doubt that is the case. Not just because of Greece but for any part of the union,” he said.
“Once the idea enters peoples’ minds that the monetary union is not forever, speculation begins … who’s next? That question is the solvent of any monetary union. Sooner or later it is going to start raising interest rates, political tensions, capital flight,” Varoufakis underlined.
His comments were recorded before those of European Central Bank (ECB) President Mario Draghi, who said this weekend the Eurozone was better equipped than in the past to deal with a new Greek crisis but warned of “uncharted waters” if the situation deteriorates.

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