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Greek June Vote Is About Euro Membership, Franz Tells Rheinische

Greece’s June election is a vote on the country’s euro membership, Wolfgang Franz, head of Chancellor Angela Merkel’s council of economic advisers, told the Rheinische Post.

A decision to leave the euro area would trigger a collapse of consumer spending and corporate investment, a rapid increase in unemployment and many Greeks would lose a large part of their savings, Franz told the newspaper.

Greece can only remain a euro member if the government honors its part of the economic adjustment program, he also told the newspaper.

Franz added that the contagion effects of a Greek euro exit wouldn’t be as dramatic and unpredictable as two years ago, Rheinische Post reported.

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