Juncker: Euro Zone Already Prepared for Greek Exit

Jean-Claude Juncker (L) and German Chancellor Angela Merkel (R) return to continue the emergency meeting in the new developments regarding the Greek financial crisis, one day before the start of the G-20 summit in Cannes, France, 02 November. EPA/BGNES

Eurogroup head Jean-Claude Juncker has tried to assuage fears that other euro zone memebers will be hurt if Greece were to leave it.

"We are working on the subject of how to ensure there is not a disaster for the people in Germany, Luxembourg, the euro zone. We are absolutely prepared for the situation which I describe and which I want to be avoided,"  Juncker told ZDF Morgenmagazin:

"Everything must be done to try to make sure one member of the 17-member group does not fade away but if this were the wish of the Greeks -- and I think that would be wrong -- then we cannot force the Greeks toward their fortune," Juncker said.

"This is not my favored scenario. I would like Greece to stay on board but Greece must fulfill its obligations," he said.

He said euro zone leaders had a responsibility to the whole currency bloc and it was their job to try to stop contagion.

Greece entered a period of intense political instability on Thursday after ministers and members of parliament fiercely opposing the plan for a referendum on the EU bailout package, put forth by the Prime Minister George Papandreou.

At least three governing party MPs say they will not back the government in Friday's confidence vote.

That deprives George Papandreou of a majority in parliament. If he cannot muster the support of enough opposition MPs, he will lose the vote, the government will collapse and early elections could be called.

On Wednesday, eurozone leaders withheld the latest EUR 8 B rescue loans for Greece until after its referendum on the package, which is expected to take place on 4 or 5 December.

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