ECB's Asmussen: Greek exit manageable but not preferable

Steve Asmussen (Photo credit: circulating)

European Central Bank policymaker Joerg Asmussen said a Greek exit from the euro zone would be manageable although he would prefer it if the crisis-stricken country remained within the single currency bloc, a newspaper reported on Monday.

"Firstly my clear preference is that Greece should remain in the currency union," Asmussen was quoted as saying in an advance copy of an interview due to appear in Germany's Frankfurter Rundschau on Monday.

"Secondly, it is in Greece's hands to ensure that. Thirdly, a Greek exit would be manageable."

But Asmussen, a member of the ECB's executive board, also warned that a so-called Grexit would not be as orderly as some imagined: "It would be associated with a loss of growth and higher unemployment and it would be very expensive - in Greece, Europe as a whole and even in Germany."

He also said it would be good if the euro zone's permanent bailout mechanism, the European Stability Mechanism (ESM), successor to the European Financial Stability Facility (EFSF), were up and running as soon as possible. ... Continue to read.

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