The big news out of Europe yesterday was a rush to plan B: Greece's exit from the eurozone. Investors were betting on it with their money and European politicians were preparing for it with their contingency plans. But today, almost in unison, the markets and the politicians are swinging the pendulum in the other direction.
The European Central Bank. Eager to dismiss reports that the EU was expecting Greece's exit, Joerg Asmussen, member of the Executive Board of the European Central Bank tried to squash rumors Thursday in a CNBC interview. "It's our strong preference that Greece stays in the euro zone…. We are working on plan A," he said. "I always work on plan A. I am not speculating, I am working to make plan A successful." He repeated those claims during a conference in Poland the same day.
EU Leaders. In a joint statement responding to reports about widespread contingency plans, the heads of state of the EU meeting in Brussels issued a statement saying ''We expect that after the elections, the new Greek government will make that choice." In a separate statement today, Italy's Mario Moni added a particularly influential statement saying he thought Greece would ultimately stay in the eurozone.