It has been reported in the Irish Independent that the EU has been working on a Grexit. Its like pulling teeth sometimes trying to get the EU to admit what is sometimes blindingly obvious. Two years many felt that the debt burden Greece carried was too large and would come to this. The only question now is this too little too late.

THE EU is working on an emergency plan for a Greek euro exit, a key economic commissioner admitted for the first time today.

Karel De Gucht, a former Belgian foreign minister before he became EU trade commissioner, said that the EU is ready to handle the “cataclysm” of Greek exit without a “domino effect” – despite the financial turmoil engulfing Spain. ”How much will it cost? I do not know, but it will cost money. What I am assured of is that there will be no contagion: a Greek exit does not mean the end of the euro,” Mr De Gucht said. Painting a grim picture the commissioner said that if Greece left the euro it was “finished” and that, while the euro would survive it would have to fight off a “cataclysm”.

 ”C’est fini. It [Greek exit] means that after a while you can no longer pay your officials who can no longer pay your pensions,” he said.  ”All you can do is have your central bank to print money, and then you get hyperinflation. That would cause a cataclysm in other countries that are now under pressure.”

Citibank fear the contagion affect.

“Contagion Risks Are Trickier – In the run-up to potential Grexit, all eyes would likely be focused on the contagion risks to Ireland, Italy, Spain and Portugal (IIPS). With sufficient fiscal resources and an accommodating ECB, contagion to Italy and Spain should be manageable. We estimate the ECB would need to deploy up to an additional €800bn in liquidity to support potential deposit outflows and debt refinancing for the IIPS banks – the equivalent of a one LTRO and a half. ECB’s assets could rise to around 41pc of EA GDP versus 33pc today.

Apparently, its a piece of piss to start printing new drachmas, just give DeLaRue a shout and tell them how much you want printed.

De La Rue has drawn up contingency plans to print drachma banknotes should Greece exit the euro and approach the British money printer, an industry source has told Reuters.