Greek exit from euro costs UK £4.8bn

Britain is facing £4.8 billion in loans in case Greece leaves the euro zone despite earlier warnings from British officials calling on Greeks to leave the euro zone if they voted for anti-austerity left-wingers. On Monday 4 June, the think tank Open Europe made a prediction that if the new Greek government decide to leave the single currency bloc, British taxpayers have to offer up to £4.8 billion because Britain would have no option but to help to bail out the country through the International Monetary Fund, reported The Independent. A new legislative election in Greece is to be held on 17 June 2012 after a coalition government was unable to be formed following the election in May. Open Europe said the cost of supporting Greece would be anything between £54 billion and £210 billion if the new government decides to leave the euro zone. Raoul Ruparel, Open Europe’s head of economic research said Britain would be “possibly underwriting between £3.2bn and £4.8bn of the entire rescue package”. This comes as British Prime Minister David Cameron warned Greek voters that they should leave the euro zone in case they voted for anti-austerity left-wingers. “They can vote to stay in the euro zone and meet their commitments or they can vote to give up on their commitments and in effect give up on the euro zone. This must be a moment of decisiveness”, said Cameron.