Report: Euro Zone Prepping Greek Exit

    Image #: 17900086    epa03219896 A Greek flag waves at Syntagma square in front of the Greek Parliament as pedestrians walk by, in Athens, Greece, 15 May 2012. Greece's president was in meetings on 15 May with the leaders of five political parties that could see them surrender the reins of power to a new government made up of technocrats, an effort to resolve the political deadlock which risks forcing the country into new elections and out of the eurozone. Party leaders have been squabbling for the past week over whether the country should continue down the path of harsh austerity measures prescribed by the EU and the IMF - or pull out of a bailout deal. Coalition talks have failed so far after the Coalition of the Radical Left or SYRIZA, which came second in the vote, insisted that the terms of an international bailout from the European Union and the International Monetary Fund (IMF) be scrapped or largely renegotiated.  EPA/ALKIS KONSTANTINIDIS /LANDOV

    Alkis Konstantinidis, EPA / Landov

    Euro-zone officials have told the currency members to prepare contingency plans should Greece exit the euro, sources told Reuters on Wednesday. Officials said experts who work for the currency bloc’s finance ministers said that each country should prepare an individual contingency plan should Greece exit the euro. Meanwhile, Germany’s largest bank, Bundesbank, said Wednesday that the 17-country euro zone would be able to cope if Greece does not implement austerity measures—something that the European Union has been saying is not an option. Bundesbank wrote in its monthly report that though the situation with Greece is “worrying,” the challenges, while “significant,” will be “manageable.”

    Read it at Reuters