Luxembourg’s prime minister says a Greek exit from the euro would be manageable but not desirable.

But speaking on German TV, Jean-Claude Junker, who also chairs the eurozone finance mininsters’ meetings, admitted there would be enormous risks for Greece:

“From today’s point of view, a Greek exit would be controllable, but, nonetheless, it is not a desired action. It would be aligned with serious risks, particularly, for the ordinary people in Greece. One could say, it doesn’t matter what happens to ordinary Greeks – the small people -and many of them exist in Greece. But for me it matters – I care about them.”

The Luxembourg premier warned that if Europe loses the euro then it loses political influence and economic power. Ultimately, he said, the whole continent would be weaker.

In Germany the opposition SDP is calling for a referendum on fiscal union and the issuing of eurobonds, which some analysts think is the only way of preventing a break-up of the eurozone.

“If European governments don’t succeed in having a common financial and fiscal policy in Europe, we won’t be able to save the euro in the end,” says party leader Sigmar Gabriel.