03:22 GMT, 15 May 2012
Global Markets Plunged Into Turmoil
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Tens of billions of pounds were wiped off shares yesterday as Angela Merkel conceded
for the first time that Greece could be forced to quit the euro.
The German chancellor suggested that European support for Greece would ‘end’ unless Athens held to
the punishing bail-out terms agreed with Brussels and Berlin.
Her warning came amid mounting speculation that Greece could be forced out of the single currency
within weeks – plunging both Athens and the single currency into crisis.
Mrs Merkel, who will hold talks on the crisis with new French president Francois Hollande today, said
Greece would ‘always’ be a member of the EU.
But she left open the question of Greece’s membership of the single currency, saying only that it would
be ‘better’ if it remained within the ailing single currency.
Her comments came as the mounting political turmoil in Greece sent shockwaves through world stock
markets. Mr Hollande will fly to Berlin today for talks just hours after being sworn in.
In London, the FTSE-100 index was down by 110 points to its lowest level this year, wiping almost £30
billion off the value of Britain’s top companies.
Bank shares took a hammering, with Barclays, Lloyds and Royal Bank of Scotland all down by around
5 per cent.
Global Markets Plunged Into Turmoil
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Tens of billions of pounds were wiped off shares yesterday as Angela Merkel conceded
for the first time that Greece could be forced to quit the euro.
The German chancellor suggested that European support for Greece would ‘end’ unless Athens held to
the punishing bail-out terms agreed with Brussels and Berlin.
Her warning came amid mounting speculation that Greece could be forced out of the single currency
within weeks – plunging both Athens and the single currency into crisis.
Mrs Merkel, who will hold talks on the crisis with new French president Francois Hollande today, said
Greece would ‘always’ be a member of the EU.
But she left open the question of Greece’s membership of the single currency, saying only that it would
be ‘better’ if it remained within the ailing single currency.
Her comments came as the mounting political turmoil in Greece sent shockwaves through world stock
markets. Mr Hollande will fly to Berlin today for talks just hours after being sworn in.
In London, the FTSE-100 index was down by 110 points to its lowest level this year, wiping almost £30
billion off the value of Britain’s top companies.
Bank shares took a hammering, with Barclays, Lloyds and Royal Bank of Scotland all down by around
5 per cent.
