Greece's Yaroufakis Warns Of Contagion In Case Of 'Grexit'
Greek finance minister Yanis Varoufakis has warned that if Greece leaves the eurozone, others could follow, according to media reports. In an interview broadcast on Spanish TV channel La Sexta on Sunday, Varoufakis said that "anyone who toys with the idea of cutting off bits of the eurozone hoping the rest will survive is playing with fire," Reuters reported. "Once the idea enters people's minds that monetary union is not forever, speculation begins ... 'Who's next'? That question is the solvent of any monetary union. Sooner or later, it's going to start raising interest rates, political tensions, capital flight," Varoufakis said. The interview was recorded more than a week ago, the prospect of Greece leaving the currency union has increased since then amid a deadlock in reform negotiations with the country's international lenders. The Eurogroup of eurozone finance ministers meets on Friday, but few expect a major breakthrough in the talks. A top EU official said on Friday that the meeting on May 11 instead is the "decisive" moment for Athens. The next tranche of bailout money to Greece is being withheld until a reform program is agreed by both sides. Athens is facing debt payments over the summer and could default on its loan unless more money is disbursed.
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