Greece could quit the euro, admits Merkel as global markets are plunged into turmoil

• Growing pessimism over future of single currency in current form
• Greek political paralysis as talks continue at 7.30pm to form government
• Communists vow to take to the streets as fears of civil war grow
• Ministers say kalashnikov-wielding gangs could take over
• Worsening crisis and thousands take to streets for mass protests in Spain
• Merkel's Christian Democrats 'crushed' in 'bellwether' regional elections
• German chancellor raises possibility of Greek exit for first time
• Greek bank shares plunge by 7%, as European stock markets also fall

By Daily Mail Reporter

PUBLISHED: 07:49 GMT, 14 May 2012 | UPDATED: 03:22 GMT, 15 May 2012

Tens of billions of pounds were wiped off shares yesterday as Angela Merkel conceded for the first time that Greece could be forced to quit the euro.

The German chancellor suggested that European support for Greece would ‘end’ unless Athens held to the punishing bail-out terms agreed with Brussels and Berlin.

Her warning came amid mounting speculation that Greece could be forced out of the single currency within weeks – plunging both Athens and the single currency into crisis.

Observers have dubbed the possible departure as the ‘Grexit’ and one Greek minister last night warned the crisis could result in ‘civil war’, with Kalashnikov-toting gangs roaming Athens.

Greek newspaper Imerisia reported that the government has just £1.2billion left in its coffers – enough to continue for only a few days.

Last night there were also rumours of an unofficial ‘grey market’ in the drachma – the old Greek currency – springing up in anticipation of the exit.

FULL STORY: http://www.dailymail.co.uk/news/article-2144074/Global-financial-ma...