The European Commission cautioned about a 'catastrophe' to ensue if Greece withdraws from the European Union (EU). Chief Executive Jean-Claude Juncker pressures EU governments to show solidarity in light of this, saying the risks involved have been underestimated.

"This is not a time for division," comments Juncker in public. "This is the time for coming together."

Like Us on Facebook

He says that a domino effect may occur and cause the collapse of the euro, after German Finance Minister Wolfgang Schaeuble says Greece may leave the Eurozone because its leaders failed to secure new debt negotiations in its favor.

"As the responsibility, the possibility to decide what happens lies only with Greece and because we don't exactly know what those in charge in Greece are doing, we can't rule it out," said Schaeuble last week on the likelihood of the 'Grexit'.

French Socialist Pierre Mosovici agrees on the significance of this, saying to Der Spiegel, "All of us in Europe probably agree that a Grexit would be a catastrophe -- for the Greek economy, but also for the euro zone as a whole."  

Despite views that protective mechanisms from three years prior could manage the likely exit of Greece, or even strengthen the euro, Mosovici says "If one country leaves this union, the markets will immediately ask which country is next."

In a 90-minute meeting with Greek Prime Minister Alexis Tsiparas, Mosovici advised Greece's leader to put extra effort in convincing his creditors and lenders that he was satisfying their demands for savings and free market reform. This is according to an EU official that spoke to Reuters on the matter.

Recent negotiations have allowed an extension of Greece's 240 billion euro (approximately US$250 billion) bail out deal to June given certain conditions. The Greek PM calls for its creditors to help it pacify its 'humanitarian crisis'.

This deal was reached on February 20, yet it was only last week when talks began on how these conditions would be met. GabrielSakellaridis, Greek government's spokesperson said a referendum may be called if creditors ask for more austerity.

TagsGrexit, European Commission, catastrophe, Jean-Claude Juncker