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Page last updated at 08:19 GMT, Wednesday, 16 May 2012 09:19 UK

'We are not planning for a Greek exit'


Newly inaugurated French President Francois Hollande has pledged to work with Germany to resolve the EU's economic crisis, with Greeks set to return to the polls in an election that could potentially lead to the country leaving the euro.

Guy Verhofstadt, former prime minister of Belgium, said there is a risk of "contagion" if Greece leave the euro.

"There is no real firewall around the other economies of Europe, we only have a few fire extinguishers," he said.

Richard Corbett, adviser to the president of the European Council, said that no-one in the EU was planning for a Greek exit.

The risk of doing so, he said, is it could become a "self-fulfilling prophecy".

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