ECB's Nowotny counts costs of potential Grexit

European Central Bank Governing Council member Ewald Nowotny acknowledged on Monday calculating the costs of a Greek exit from the eurozone, a rare admission from a central banker as Athens struggles to reach a deal with its creditors.

His comments underscored the sense of urgency in Europe.

Germany's EU commissioner said it was time to prepare for a "state of emergency" after talks fell apart at the weekend to rescue Greece from default and possible exit from the euro.

Asked about the costs of "Grexit", Nowotny told reporters: "Of course, every responsible institution and also central banks have to make some kind of calculations what would be some effects ... For the time being we should try to avoid such a situation and not to discuss it too much."

Pressed on what Grexit could cost Austria, whose central bank Nowotny heads, he said: "We do have the numbers but I think it's not something that we want to concentrate on."

Talks between Greece and its creditors ended in failure on Sunday, with European leaders venting their frustration as Athens stumbled closer towards a debt default that threatens its future in the euro.

The ECB's chief economist, Peter Praet, told reporters at the same economic seminar in Vienna that he would not comment on a possible Greek exit, which he called a political matter.

But he added: "You get used to (a) crisis management environment and crisis preparation environment. You are drilled since many years, so yes, we have experience, whatever the situation we have experience -- unfortunately, I say -- since many years. It is true that we have experience in many difficult situations."

Before that, Nowotny had said it was too early to discuss reducing emergency funding for Greece's banks...