ECONOMY

Deutsche Bank chief warns against Greek euro exit

Deutsche Bank Chief Executive Josef Ackermann said a Greek exit from the euro zone must be avoided to prevent contagion to other vulnerable European nations.

“We should not even begin to think about a Greek exit,» Ackermann told German television ARD on Sunday evening.

Aside from causing massive problems for Greece, such a move could bring with it contagion to other countries, Ackermann said.

In addition to Greece, Italy too needs to cut its deficit level, as a way to make itself less vulnerable to market jitters, Ackermann said.

Ackermann said it was a sign of Europe’s inability to solve its own problems that the International Monetary Fund (IMF) was getting involved in monitoring Italy’s budget.

Italian Prime Minister Silvio Berlusconi agreed to IMF monitoring of economic reforms which he has long promised but failed to implement. He said he had turned down an offer of IMF funding for Italy.

[Reuters]