Greece Must Keep Euro to Avoid Contagion, Oudea Tells Monde

Greece must keep the euro to avoid contagion consequences for other countries considered “fragile,” Societe Generale SA (GLE)’s Chief Executive Officer Frederic Oudea told Le Monde.

“Everything must be done so that Greece stays inside of the euro,” Oudea told Le Monde in an interview. Contagion effects from a hypothetical Greek euro exit mustn’t be ignored, said Oudea, who is also the head of the French Banking Federation.

French banks are not working together to study a scenario of a Greek euro exit, Oudea told Le Monde. Each company needs to manage its risks considering possible scenarios, including Greece leaving the euro, Oudea told Le Monde.

A European banking union wouldn’t solve the sovereign-debt crisis, Oudea also told Le Monde. Societe Generale’s CEO repeated that he sees no need for a third round of European Central Bank long-term refinancing operations to help solve Greek and Spanish issues, Le Monde reported.

To contact the editor responsible for this story: Fabio Benedetti-Valentini at fabiobv@bloomberg.net

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