Wednesday 29 March 2017

Greece crisis: Irish government drawing up strategy for 'Grexit', meeting tonight

Greek Finance Minister Yanis Varoufakis shakes hands with Michael Noonan ahead of the meeting in Luxembourg yesterday
Greek Finance Minister Yanis Varoufakis shakes hands with Michael Noonan ahead of the meeting in Luxembourg yesterday
Independent.ie Newsdesk

Independent.ie Newsdesk

The Economic Management Council is set to look at the potential impacts of a “Grexit” at a meeting tonight after Greece introduced capital controls last night and banned its banks from opening today.

The Cabinet sub-committee, is made up of Taoiseach Enda Kenny, Tanaiste Joan Burton, Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin and directs the thrust of Government policy.

The council are not reportedly expecting a major 'first round' impact on this country. However, it is set to examine the possible medium term and long term impact on Ireland of a potential Greek default and departure from the Euro.

Earlier this month Michael Noonan confirmed that talks had taken place “at a high level” with the Central Bank in Dublin and officials at the National Treasury Management Agency (NTMA), which manages the assets and liabilities of the state.

He said: “We don’t think there will be a contagion effect if there was a Greek exit but we’ve had conversations at a high level with the NTMA and with the Central Bank and we’re watching the situation and we’re taking advice from the ECB in Frankfurt and from elsewhere, but it’s a European issue rather than an Irish issue.

Speaking at the time Enda Kenny said “I don’t have figures of what that [a Greek default] might mean [for Ireland] but I think what it will mean in Greece would be a very rapid spiral to a serious social set of consequences.”

“That’s why it’s most important that the integrity of the union and the eurozone be continued here.”

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