Greece officials are denying a report by a German magazine website that the cash-strapped country is considering leaving the euro currency, according to Forbes magazine.
The official said Athens' Finance Ministry will issue a full denial shortly.
The denial relates to a report from Germany's Spiegel Online which claimed that Greece is considering leaving the euro currency, quoting unnamed German government officials.
In response, the European Commission has called an emergency meeting Friday night to discuss the matter. Also on the agenda of the meeting is the restructuring of Greek debt.
According to the German sources, Germany will try to convince Greece not to exit from the euro currency.
They will make the following arguments:
- Leaving will cause Greece’s currency to plummet by 50 percent and raise the budget deficit by 200 percent of GDP.
- Greece will probably have to leave the European Union as well.
- There will be a massive flight of capital out of Greece.
- As a result of this flight of capital, Greek banks will become insolvent.
- The Greek government will not have access to international capital for years to come.
The German delegation that will make these points at the Friday meeting consists of finance minister Wolfgang Schäuble and deputy finance minister Jorg Asmussen.