Thursday, November 3, 2011

Greece and the euro: A game-changing summit after all

by Stephanie Flanders

BBC News

November 3, 2011

Last week's European summit was supposed to be the game-changer, but the real change in the game might have happened on Wednesday night here in Cannes, as a direct result of the Greek prime minister's shock decision to call a referendum.

The change is that for President Sarkozy and Chancellor Merkel, keeping Greece in the euro is no longer priority number one. And a eurozone without Greece is no longer necessarily the worst outcome.

Just a few months ago, when Greece came under pressure, these two leaders were making joint statements saying "the future of Greece is in the euro." Not now.

To a packed hall of journalists here in Cannes, the French president and the German chancellor have now told the world that Greece could stay in the euro - but it had to want it.

If the Greeks are going to get a referendum - President Sarkozy said - that is the question they ought to be asked.

France and the rest of the eurozone have done everything they can to help Greece, but "there are rules" to this common European currency.

Greece has to decide whether it wants to follow them.

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