The euro zone will not allow any of its member states to quit the currency bloc, European Central Bank governing council member Yves Mersch said in an interview published today.

The interview, published in the China Business News, quoted Mr Mersch as saying it was unrealistic and a financial suicide for euro zone members to leave the bloc when they do not have their own working currencies to fall back on.

He said the European Central Bank would also not allow any euro zone states to default on their debt as other countries could follow suit and ruin the region's credibility as a whole.

Mr Mersch said it was necessary for the European Central Bank to raise interest rates in April and July to control inflationary expectations, and said movements in the euro are not a deciding factor in setting policy.

China Business News said it interviewed Mr Mersch last week when he visited Beijing.

Reuters