Ministers plan for the 'death of the euro' as Greek crisis threatens future of single currency

Britain is preparing for the collapse of the euro, a Treasury minister warned last night.If Greece's debt crisis forces it to quit the eurozone, it would have 'a very significant economic impact' on Britain, said Mark Hoban, the Financial Secretary to the Treasury.Officials said British banks stand to lose £8billion if the Greek economy goes under.It came as former foreign secretary Jack Straw led MPs from all sides in predicting the death of the single currency, warning: 'Is it not better that it happens quickly rather than a slow death?’He said the Government should be honest and admit the single currency is on the brink of collapse. He told the Commons: 'The eurozone cannot last. In its current form [it] is going to collapse.'The International Monetary Fund also warned that the Greek debt crisis could threaten the stability of the entire eurozone, Britain's biggest trading partners.Mr Hoban admitted the Government was preparing contingency plans for a euro meltdown with the Bank of England and the Financial Services Authority.He refused to say whether ‘the eurozone will stay intact’, a coded reference to Greece ditching the single currency. But he added: ‘This crisis demonstrates the huge strain the eurozone is under. That’s why it was right for us to stay out of the eurozone.‘The Treasury, together with the Bank of England and the FSA, are monitoring the financial system, including the euro area, on an ongoing basis. Many scenarios are considered.’‘Continued instability in the eurozone could be one of the factors that could hold back the recovery of the British economy.’