German advisers say euro zone exit should not be taboo

The European Union flag is seen in front of the parliament building during a Pro-Euro rally in Athens, Greece, July 9, 2015. REUTERS/Yannis Behrakis

BERLIN (Reuters) - The German government's panel of independent economic advisers favours creating an insolvency mechanism for euro zone states and says countries should be able to leave the single currency as a last resort.

The Greek crisis has called into question the future of the euro. Wrangling over a third bailout for the heavily indebted country almost sending Athens crashing out of the euro zone.