Greece’s financial troubles could signal “the beginning of the end” of the eurozone if a restructuring of its debt is allowed to go ahead.
The warning was delivered by Jean-Pierre Jouyet, the president of the French Authority for Financial Markets, today in response to Germany’s rescheduling proposals.
However, Jouyet added that such a move could also signal a new phase of cooperation between EU governing powers.
He said: “What is at stake through Greece is the credibility of the eurozone and of the construction of Europe.”
“The Greek problem reveals that there is a very strong clash between a single currency … and an economic and financial organisation for Europe which is not strong enough.”
Jouyet said that a restructuring of Greece’s financial obligations would not only undermine confidence in the eurozone but would also just delay the country’s problems.
Should confidence be disrupted in such a manner, it could lead to increased outflows from Greek funds. The European Central Bank has previously indicated it would not be permitted to continue offering Greece financial assistance should a restructuring be allowed.