Stournaras: Greek exit from the euro area isn’t an option

European Central Bank Governing Council member Yannis Stournaras said a Greek exit from the euro area isn’t an option and wouldn’t help the country’s economy in the long term, as he urged the government to act quickly to agree on reforms with the country’s creditors.

”Grexit would deliver no benefit but a lot of pain,” Stournaras, said at an event yesterday.

“The new Greek government has a unique opportunity to implement bold structural reforms, which would be backed by a large majority of political forces in the country.

”Stournaras argued that if Greece implements “bold” reforms in pensions, social security and labor markets, it could hope for some relief on the cost and duration of its debt. “Extending maturities and reducing interest rates on the outstanding debt may improve the growth outlook of the Greek economy,” he noted.

“Alternative options could also be considered to improve the sustainability of Greece’s public debt. However, they might be more contentious, as they likely involve some costs for euro-area partners.”