George Osborne, UK chancellor has suggested that there is a possibility that Greece might be asked to leave the eurozone in order to save the currency.

The comments came as the European and the worldwide markets received financial shocks as the Spain’s borrowing costs reached a new high. The chancellor suggested that Greece may be asked to leave the eurozone so that it will be easier for the German government to convince its people that the funding into the common currency is worth.

While speaking at the summit of chief executives organised by a UK publication, he said that, “I ultimately don't know whether Greece needs to leave the euro in order for the eurozone to do the things necessary to make their currency survive.”

Osborne also expressed concerns over the way the bailout package for Spanish banks were organized. European leaders have announced a €100bn (£81bn) bank rescue package for the struggling banks in spain.

He is likely to address the issue of the state of UK contingency plans in his annual Mansion House speech on Thursday. The matter was also discussed at the summit of chief executives.