Sunday, June 17, 2012

How Would Greece Leave the Euro?

by Matina Stevis

Wall Street Journal

June 17, 2012

Never has the world followed a Greek election as closely as this Sunday’s. At stake is Greece’s future inside the euro zone and — depending on who you believe — the possible future of the euro zone itself.

Euro-zone leaders have told Greeks, in no uncertain terms, that whoever they pick to be their next prime minister, he will have to continue pushing through tough austerity measures and deep structural reforms — or else the country will be heading for the exit door.

Radical left Syriza party leader Alexis Tsipras thinks the Europeans are bluffing. Conservative New Democracy chief Antonis Samaras doesn’t. The latest polls show the two parties running neck and neck. It will be up to the Greeks — eight out of 10 who say they want the euro — to decide.

If Greece did exit the euro zone, how exactly would it happen and what would be the practical consequences?


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