Merkel rules out 'uncontrolled developments' from Greek euro exit

German Chancellor Angela Merkel on Monday ruled out the prospect of an uncontrolled Greek exit from the euro, of the kind that might plunge the global economy into a "state of shock".

Speaking after a meeting with Panama President Ricardo Martinelli, who had earlier announced Panama's wish to adopt the euro as an official currency alongside the U.S. dollar, Merkel told reporters that "there will absolutely not be such uncontrolled developments".

At the same time, she warned that Greece still must continue austerity reforms and that decisions will hinge on the EU-IMF troika's report on its progress.
"We want Greece to remain in the eurozone but the work on that is not complete and there is still a lot that must be done in the coming days and next few weeks," she told reporters, repeating that the final decisions will only be taken after the troika's report, when European leaders will be in a position to "draw conclusions".

Earlier, the chancellor's spokesman Steffen Seibert had stressed that Athens must continue with tough austerity reforms but ruled out any further 'haircut' of Greek debt, saying that the German government was not "prepared to discuss" such an option.

SOURCE: ATHENS NEWS AGENCY