Heat Rises in Europe amid Speculation of Greece Exiting the Euro

German news source Der Spiegel reported Friday that Greece was looking to leave the Euro as its currency.

The news came after finance officials met in Luxembourg. While some economists scoffed at the idea, German sources have encouraged the move.

"If Greece were to exit from the euro zone, the country would be able to devalue its currency and become more competitive,” the head of the IFO institute, Hans-Werner Sinn, told Frankfurter Allgemeine Sonntagszeitung.

"If Greece instead were to try an 'internal' devaluation of between 20 percent to 30 percent by cutting wages and prices, it would probably come to the brink of a civil war," he noted.

German chancellor Angela Merkel noted that “If Greece wants to leave the euro zone that is its own autonomous decision."

Greek officials denied the report.

“The markets continue to disbelieve in our country,” Finance Minister George Papaconstantinou, said.

Greece has weathered economic strain thus far through the aid of a 110 billion Euro bailout in May, 2010.