Reuters
November 1, 2011
Greece could face bankruptcy if the population ends up voting against the European Union's latest financial aid package in a referendum, the chairman of the Eurogroup countries said on Tuesday.
Expressing concern at Prime Minister George Papandreou's snap decision to call a referendum on the 130 billion euro ($180 billion) bailout package, Jean-Claude Juncker said it had piled "great nervousness and insecurity" on top of an already highly insecure situation for the euro zone economy.
Asked whether Greece could end up bankrupt if Greeks were ultimately to reject the package, Juncker told RTL Radio:
"I cannot exclude that this would be the case, but it depends on how exactly the question is formulated and on what exactly the Greek people will vote on."
"It is something that brings a great nervousness, that adds great insecurity to already great insecurity and therefore we need to see calmly how we will deal with this."
Fighting for his political survival after barely two years in office, Papandreou delivered a shock to Greece, Europe and the rest of the world late on Monday when he announced a referendum on the bailout, which was agreed on October 27.
The decision sent financial markets into a tailspin on Tuesday, raising concerns that not only the rescue of Greece could unravel, but that debt problems in Italy, Spain and beyond could worsen, threatening the euro zone's survival.
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