Merkel 's Suggestion Created Shockwave Around The World
 

18 May 2012 Last updated at 21:13 GMT BBC

Merkel 'suggests Greek referendum on euro membership'

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Germany's leader has had telephone contact with the Greek president, amid continuing speculation that his
country may have to leave the eurozone.

A row broke out over whether Angela Merkel, the German leader, has suggested Greece should hold a
referendum on leaving the euro. Greek officials said she raised the idea in a phone call with their President,
but a spokesman for the German Chancellor strongly dismissed the reports.

Earlier, European Union Trade Commissioner Karel De Gucht said he European Central Bank and the European
Commission are working on emergency scenarios in case Greece had to leave the single currency.

Several hours later, fellow commissioner Olli Rehn issued a statement saying that he is responsible for financial
and economic affairs and relations with the ECB.

"We are not working on the scenario of a Greek exit," he said.

That however still doesn't rule out the possibility of contingency planning, says the BBC's Matthew Price in
Brussels.