In a well received speech at the annual British Venture Capital and Private Equity Association's annual chairman's dinner, Mr Tyrie said the current lull in the single currency's crisis, after last week's Greek bond swap, should be used to engineer a permanent exit for Greece.
The economic and political challenges facing the country if it stays in the eurozone would be too great to be sustainable, he argued.
Mr Tyrie also said increasing the size and fire power of the IMF was essential. But he also warned the body should avoid getting too close to the eurozone in future but should instead "get tough" with the single currency bloc.
Speaking to some of the most powerful investment groups in the UK and Europe, Mr Tyrie said the IMF should not deal with the countries in the eurozone as "partners" but should approach them from "the other side of the table" given it was the "only fire brigade in town".
Mr Tyrie also urged the UK and others to stick with the principles of free trade having come through the worst of the crisis without "beggar thy neighbour" devaluations.
He said maintaining the support of free trade was one of the biggest challenges that the world faced. However, he warned that the UK would not return to any degree of economic normality until the country had seen a return to the full functioning of the banking industry.
The Telegraph
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