Greek Euro Exit Would Be Disaster, Papaconstantinou Tells Stampa

Abandoning the euro would be a disaster for Greece, Greek Finance Minister George Papaconstantinou told the Italian newspaper La Stampa in an interview.

“Consequences would be catastrophic,” Papaconstantinou told the newspaper, saying public debt would double, consumers’ purchasing power would be “shattered,” banks would collapse and the country would fall into a “war-like recession.”

The country will continue implementing its recovery plan, Papaconstantinou told the newspaper. Should that not be enough, Greece may ask for intervention from the European Financial Stability Facility in 2012, he said.

To contact the reporters on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.

To contact the editor responsible for this story: James Ludden at jludden@bloomberg.net

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