Britain facing financial ‘earthquake’ if Greece leaves eurozone, CBI chief warns

Posted on May 17, 2012

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Various Euro bills.

BILLIONS of pounds were wiped off Britain’s biggest companies yesterday as Greece

teetered on the brink of economic disaster.

Markets took fright after the political deadlock in Athens fuelled fears the debt-stricken country would be dumped out of the euro.

It’s feared that could lead to the complete meltdown of the 17-strong eurozone.

And last night, one British business leader warned that a Greek exit would hit Britain like an “earthquake”.

John Cridland, the boss of the Confederation of British Industry, added: “Clearly the concern is it will impact not just on the wider eurozone but the British economy, given half our exports go to the eurozone.”

The carnage on the London stock market saw shares plummet 110 points to 5465 – knocking about £28billion off the value of the UK’s major firms.

No country escaped unscathed. Shares in the US, France, Germany, Spain and Italy all nosedived into the red.

And there is the chance that Britain could also end up having to support a multi-billion-pound rescue plan to clean up the eurozone’s finances if the Greeks are shown the door.

European finance ministers held an emergency meeting in Brussels last night on the crisis and to make plans in case of a Greek exit, or Grexit.

Daily Record

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