PM Holds Talks Over Possible Greek Euro Exit

David Cameron has chaired a meeting to discuss the possible impact on the UK economy of Greece leaving the eurozone.

The Prime Minister met senior officials from the Treasury and Bank of England for an hour in the Cabinet room at No 10, amid ongoing speculation about the potential for Greece to default on its debts or drop out of the single currency.

They discussed various scenarios and the implications for for the UK.

Chancellor George Osborne did not attend the meeting as he was travelling to the G20 meeting of finance ministers and central bankers in Istanbul.

A government source said officials are keeping a close eye on events in Greece and want to make sure they have a clear idea of any British business exposure, according to Sky Political Correspondent Sophy Ridge.

Downing Street stressed that the overwhelming majority of Greek debt is held by eurozone institutions, not by Britain, and that reforms since the previous crisis in 2012 may have lessened the vulnerability of other European countries to a shock from Greece.

But Mr Cameron’s official spokesman said: “There do remain risks around contagion and uncertainty and so it is important to look at all of those.”

The possibility of a Greek exit from the single currency has loomed large since the height of the eurozone crisis and contingency plans were first prepared by the UK Treasury in 2011.

Investors have been particularly nervous about the possibility of Greece defaulting on its loans, given the new government’s refusal to seek extensions.

Its demand for a cut to its obligations and the EU’s refusal to negotiate has seen the country’s 10-year debt yields – the interest rate Greece pays to service its debts – hit more than 11%.

The main stock market in Athens lost another 6% in morning trading on Monday, with banks worst hit.

Europe’s major stock markets were as much as 2% down.

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PM Holds Talks Over Possible Greek Euro Exit