A Greek exit from the euro zone would be manageable, European Central Bank policymaker Joerg Asmussen was quoted on Monday as saying, although he would prefer it if the crisis-stricken country remained within the single currency bloc.

He also said that the Bundesbank, whose chief ECB President Mario Draghi singled out earlier this month for expressing reservations over the bank's new bond-buying plans, was not isolated in Europe.

The comments on Greece from the ECB executive board member, Germany's deputy finance minister until he took the post at the end of last year, sum up a growing debate in Berlin on the possibility of cutting Greece free.

Most would prefer not to, but an increasing number of MPs and influential figures have come out of the woodwork saying the euro zone is strong enough to deal with the fallout.

"Firstly, my clear preference is that Greece should remain in the currency union," Asmussen was quoted as saying in an advance copy of an interview due to appear in Germany's Frankfurter Rundschau on Monday.

"Secondly, it is in Greece's hands to ensure that. Thirdly, a Greek exit would be manageable."

But Asmussen also warned that a so-called Grexit would not be as orderly as some imagined: "It would be associated with a loss of growth and higher unemployment and it would be very expensive - in Greece, Europe as a whole and even in Germany."

He also said it would be good if the euro zone's permanent bailout mechanism, the European Stability Mechanism (ESM), successor to the European Financial Stability Facility (EFSF), were up and running as soon as possible.

"The ESM is a better instrument for dealing with the crisis than the EFSF," he was quoted as saying.

Germany's Constitutional Court has said it will deliver its ruling on whether the ESM and the fiscal pact are compatible with the German constitution on September 12. Germany cannot legally ratify the two treaties without the go-ahead from the court and the ESM cannot come into effect without German backing.

On euro zone bonds, Asmussen said such common debt was only logical in a full fiscal union and added that they were not crisis management tools.

BOND BUYING PROGRAMME

Draghi indicated earlier this month that the euro zone's central bank may again start buying government bonds to reduce crippling Spanish and Italian borrowing costs but not before September and only if governments activated the euro zone's bailout funds to join the ECB in buying bonds.

Whether the plan goes ahead at all, however, remains largely a question of whether leaders in Germany - whose own central bank opposes bond-buying - agrees over the course of a series of key meetings next month.

Whereas Draghi said that Bundesbank chief Jens Weidmann had been the only ECB policymaker to register reservations against the bond-buying proposals at this month's meeting, Asmussen hinted that the division may not be as clear cut.

"No-one should try to give the impression that the Bundesbank or its president is isolated," said Asmussen, adding that he and Weidmann worked closely together and trusted each other.

Noting that Draghi had not said the new bond-buying program would be limited in terms of time and volume, the paper asked Asmussen if this meant it could be successful as it would be unlimited.

"You heard him correctly. But wait and see. We are working on further details of the new program and we will discuss this at our next meeting," Asmussen replied.

(Reporting by Michelle Martin and Paul Carrel; Editing by Alessandra Rizzo and Patrick Graham)

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It is a matter of time, until the must leave EU.

subhuman hiddendog LOL

I see ur taking ur painkillers after the recent Keko a@@rape

Greece problems are much bigger than Turkey's problems.

What do you think what will happen to Greece when you are out of EU? Greece lived off other peoples money last 10 years. How will Greece keep itself together with no foreign aid? Exactly.. It won't.

After a decade of turbulence and chaos, Greece will fall apart in smaller states such as south-Macedonia for Macedonians, west-Thrace for Turks, Crete for Cretans. Etc. Don't worry, if you don't suck on the EU mushroom tip hard enough and you grexit, this will happen and we will be there to encourage separatism as payback for what you did in the 70's and 90's.

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I am not sure whether I like to see Greece to stay in the EU or not, both have some advantages for Turkey.


Greece out of EU, a priceless pleasure of seeing Griks suffer and never be able to even form a political obstacle for Turkey.

Greece staying in the EU, a priceless effect on EU, keeps the EU sick (like having cancer), on the long run an advantage for Turkey

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Turkiye Turklerindir (Mustafa Kemal Ataturk)

liars....little cheeky turkanimal liars !


where is ur nationalism? (watch ur 301 article u clowns !)

hidden up ur a@@?

a bunch of a few hundred ragtag guerillas are ripping ur (joke of a) TSK a new a@@hole per day !

NOW THAT HURTS !

u lost sovereignty over the SE Patatolia LOL


of course u mast@rbate over the greek crisis....just TO FORGET UR REAL PAIN !

ha ha ha

I hope Kekos TAKE THEIR TIME...no need to hurry up

let the turkanimals SUFFER

Grease has only taken from the EU and has never given back, it'll benefit Europe to kick them out.

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Griks In Despair

subanimal does Semdinli hurt SO MUCH?

try one of those...

Greece will turn into a 3rd world country after Grexit. This as logical as 1+1. Greeks never produced anything in their life. It is matter of time Greeks will join their PKK brothers and we will be there to implement a second Cyprus on Greece mainland soil. Or at least that will give us an excuse to tear apart Greece.

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LOL yes but then turdgay will be a 4th world country and in pieces.

so funny, i bet you his face was as red as a baboons arse
while typing that out glearing and swearing at the screen,
you gotta love this universe of ours even in its infinitr glory
it still manages to spit out retards like nukem, its the maths
of it all, their just there and yet noone knows for what purpose ,
waste of air if you ask me

Darn that must hurt.... and they still dream about begging tanks and taking on Turkey.....