Chancellor George Osborne says no-one should underestimate the impact of a Greek exit from the Eurozone

James Nickerson
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Osborne says he is keeping the situation under close review (Source: Getty)

George Osborne has reiterated Britain’s attitude regarding Greece is to “hope for the best, but plan for the worst,” in a speech to the House of Commons.

The chancellor told MPs no-one should understate the "impact a Greek exit from euro would have on the European economy and the knock-on effects on us."

This is seen a referendum on whether Greece leaves the Euro, and there are very serious consequences to that, but that is for the people of Greece to decide, he said.

The chancellor also said Eurozone authorities have made clear they stand ready to do whatever is necessary to ensure financial stability.

Talking specifically about Britain, five years ago, the UK was much less prepared to deal with shocks from abroad. The country is in a stronger position now, the chancellor added:

We've dramatically reduced exposure to Greece, as a country and as a banking system.

Osborne also pledging to help UK citizens in Greece, including pensioners who will have their pensions paid as normal. “The situation is uncertain and we will keep it under review,” he said

Read more: Greek debt crisis: Should UK tourists take cash to Greece? Government imposes ATM limit on citizens as banks close

Osborne further stated the Greek situation shows the importance of financial stability, which he maintains the Conservatives have provided in government, and which he will outline in more detail in the July Budget. Osborne added he did not want Britain to join the Euro, citing Greece as an example of the problems of the common currency.

While some credit and debit cards are accepted, Osborne told MPs that this was at the discretion of vendors and cash could run out at ATMs, and so encourages the 140,000 holidaymakers per week to take a sufficient amount of cash with them.

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