Leaks suggest Chancellor Angela Merkel called for Greece to hold a referendum on keeping the euro when they vote for a new government next month. A claim which the German government vehemently denied.
Talk of a Greek exit has become so serious economists have even coined the term Grexit for the eventuality. For the first time an EU Commissioner has admitted that the EU and the European Central Bank were drawing up contingency plans for a Greek euro exit.
British bank note printer De La Rue said they were ready to roll drachmas off the presses at a moment’s notice. Analysts predict that the nation already crippled by austerity measures, could enter into freefall. They are forecasting a “drachmageddon” with the former currency devalued by up to 70 per cent.
Greek radical-left leader Alexis Tsipras is not taking the news lying down. In an interview with the Wall Street Journal he remained defiant to EU pressure to stick to austerity. He simply said Greece will stop paying its debts if their funding is cut off. The latest polls suggest Tsipras’ party have lost their lead for the June elections, which could decided the fate of Greece’s euro future.