Hague says eurozone built with no exits

Foreign Secretary William Hague has spoken about the problems which Greece will face if it opts to abandon the euro, reports the BBC.

Hague said that they must be prepared to act to prevent euros leaving the country, perhaps by introducing border controls. Eurozone finance ministers are set to discuss a bailout package of 130bn euros (£108bn) for Greece on Monday.

The foreign secretary said that the old currency is not stored in vaults and ready to be distributed if needed. He explained that it is not straightforward to abandon the euro, adding that it was formed without exits.

Ed Balls, the shadow chancellor, criticised the steps which Germany was carrying out to support the eurozone. He said that for Greece to remain in the euro would mean a long period of high unemployment and low growth, during a time when Germany aren’t doing what should be done.

Mr Hague is of the opinion that greater integration is required to make the euro successful. He said it needs closer fiscal integration and closer political integration, insisting that it won’t work without that. He explained that when Germany is part of a currency like the euro it needs to impose Germanic discipline on other countries if they have to have the capability of staying in it in the long term.