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Merkel denies Greece referendum comment

Merkel denies Greece referendum comment
Angela Merkel has denied she raised the prospect of Greece holding a referendum on its eurozone membership.

The remark allegedly came after the German finance minister said market unrest fuelled by the eurozone debt crisis could only last another year or two.

As Greece was downgraded again yesterday, an election poll showed that politicians backing austerity would secure up to a 167-seat majority in the new parliament.

Financial experts have warned that Britain could be plunged into a second recession if Greece were to exit the euro, causing "irreparable damage" to the UK.

Meanwhile, Reuters reports that European officials are now working on plans in case Greece does leave.

Green Box: Merkel denies Greece referendum commentClick to open

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On air

Sir Menzies Campbell: We need both growth and austerity

19/05/2012 on 5 Live Breakfast, Radio 5, BBC