King draws up emergency plans for Greece leaving single currency as investors pull 1.4billion euros out of crisis-hit country in just two days

• Experts believe a Greek withdrawal could put pressure on Spain and Portugal to do the same, triggering a collapse of the euro
• Despite the instability the eurozone dodged slipping back into recession because of surprising German growth
• Greek State TV says country's fresh elections will be held on June 17

By Daily Mail Reporter

PUBLISHED: 08:19 GMT, 16 May 2012 | UPDATED: 19:08 GMT, 16 May 2012

Greece's president has told of 'fear that could develop into panic' at the ailing country's banks, weeks before the fresh elections which could spell the nation's exit from the euro zone.

Greeks are withdrawing euros afraid of the prospect of rapid devaluation if the country leaves the single currency, minutes of President Karolos Papoulias's meetings with political leaders showed.

Fears of panic have sparked investors into withdrawing 700million euros on Monday, and the same figure again yesterday, as Bank of England governor Mervyn King said contingency plans for a eurozone break-up were being discussed between the Bank and the UK government.

David Cameron also warned that Europe faces the potential break-up of the single currency unless urgent action is taken to deal with the euro crisis, warning the Eurozone has to either 'make-up or break-up.'

Greece's warring parties have refused to form a viable coalition, triggering new elections that could strengthen the hand of opponents of Greece's EU bailout.

Central bank head George Provopoulos said savers withdrew at least 700 million euros ($894 million) on Monday, the president told party chiefs.

'Mr Provopoulos told me there was no panic, but there was great fear that could develop into a panic,' the minutes quoted the president as saying.      

FULL STORY: http://www.dailymail.co.uk/news/article-2145139/Eurozone-debt-crisi...