ET:Greek euro exit would be catastrophy -EFSF head
BERLIN: A Greek exit from the euro zone would be catastrophic not just for Greece, the head of the euro zone's temporary rescue fund said today, a day after pro-bailout ruling parties lost their majority in parliament in Athens.
If Greece exited the euro zone that would "of course have a huge impact not just for other programme countries, not just for the banks, but also for Greece itself," Regling said, adding Greece's public creditors would also suffer. "It would be a catastrophy for Greece."
Regling also said it was completely out of the question that the European Stability Mechanism (ESM) would directly recapitalise banks, a proposal made by some policymakers to help Spanish banks.
