Warren Buffett: Grexit could be good for eurozone
Warren Buffett believes a Greek exit from the eurozone could be beneficial for the region.
The legendary investor and chairman of holding company Berkshire Hathaway waded into the issue currently dominating headlines of business publications across the continent.
During a wide-ranging interview on US news channel CNBC, Buffett discussed electronic car manufacturers Tesla, the proposed merger between HJ Heinz and Kraft Foods and a nuclear deal with Iran.
On the issue of a possible Greek exit from the eurozone, Buffett argued that it could be a positive if it meant remaining countries were more closely aligned on policy.
Bufftt said:
The euro is not dead and may never be dead, but it does have to work in greater harmonization of financial matters in its constituent countries because it can't live with people going in dramatically different directions. The Germans are not going to fund the Greeks forever.
If everybody learns that the rules mean something and that if they come to a general agreement on fiscal policy…if they mean business. That could be a good thing. If it turns out the Greeks leave, that may not be a bad thing for the euro.
However, Buffett later went on to concede he had "no idea" what would happen to the eurozone.
Greece is perilously low on funds and is still working to strike a deal with its creditors over a bailout programme. Earlier today Goldman Sachs advised its clients that the risk of a "Grexit" was continuing to rise.
The 84-year-old Buffett also commented on the planned merger between H.J Heinz and the Berkshire-backed Kraft Foods, saying he hoped it would not be the last of his major food acquisitions.