Saturday, November 5, 2011

Greece's Risky Eurozone Maneuver

by Christopher Alessi


Council of Foreign Relations
November 4, 2011

For the first time in the two-year eurozone sovereign debt crisis, EU leaders have openly acknowledged that Greece could exit the single-currency union, potentially plunging the global economy back into recession.

The shift followed a short-lived scheme (WSJ) by Greek Prime Minister George Papandreou to put a referendum to the Greek public over a new debt rescue plan agreed on by EU leaders last week. Papandreou abandoned the idea after his finance minister and other Socialist allies quickly turned against him on November 3. Meeting at the G20 leaders' summit in Cannes, German Chancellor Angela Merkel and French President Nicolas Sarkozy made clear that the preservation of the eurozone was a more urgent priority than rescuing Greece (Guardian).

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