Ex-PM Major: Greece must default to end crisis

Former Prime Minister Sir John Major has told the BBC Europe must recapitalise its banks and Greece "needs to default" on its debts, to help bring an end to the eurozone debt crisis.

Major said it would be "catastrophic" if Greece defaulted before the banks had enough money to cover their losses, but said ultimately, after their capital levels have been strengthened, a default must happen. The former Conservative PM - who was leader of the party and the country between 1990 and 1997 - said it is "desirable to get a Greek default out of the way". However, he urged policymakers to first strengthen banks' balance sheets across Europe in order to prevent a crisis. "If Greece defaulted and could not pay its debts, all the Greek bonds that are held in other banking syst...