ECONOMY

Commerzbank CEO sees euro surviving ‘tough test’ of Greece exit

If Greece were to leave the euro it “wouldn’t be the end of the eurozone” although it would present a tough test for the region, said Commerzbank AG Chief Executive Officer Martin Blessing.

With the European Central Bank acting as a backstop, the effects of a potential exit from the currency union by the debt- laden country would be manageable, Blessing said in an interview with Bloomberg Television’s Anna Edwards on Thursday.

The race for Greece to reach an agreement with international creditors is accelerating as the country moves closer to the June 30 expiry of its euro-area bailout to ensure it can meet a payment to the International Monetary Fund that’s due the same day. Prime Minister Alexis Tsipras and the heads of the three creditor institutions — the ECB, the IMF and the European Commission — are reconvening Thursday after talks were adjourned overnight.

An agreement on Thursday “would be the best outcome,” said Blessing. Failure to reach a deal would mean the rest of the region would have to move forward to strengthen ties. “The eurozone has to become more competitive,” he said.

[Bloomberg]