Most Greeks object to austerity but 7 in 10 favor staying in Euro.

[dkf]

Nov. 3 (Bloomberg) -- European leaders for the first time raised the prospect of the euro area splintering, choosing to treat Greece's December referendum on the terms of a bailout package as an in-or-out vote on the debt-stricken nation's future in the currency union.

The hardball tactics open the door for a nation to leave the currency bloc that at its setup in 1999 capped Europe's progression from war to prosperity and was declared "irrevocable" by its founding fathers. Polls show most Greeks object to the austerity required for aid, yet more than seven in 10 favor remaining in the euro, a survey last week of 1,009 people published in To Vima newspaper showed.


While leaving the euro would allow Greece to regain control of exchange and interest rates, a September report by economists at UBS AG said its new currency would drop 60 percent, and local borrowing costs would jump at least 7 percentage points, imperiling the balance sheets of banks and companies.


Departure from the European Union would cause trade to fall by half even with devaluation. The cost would be as much as 11,500 euros a person in the first year outside the euro and 4,000 euros in following years, according to UBS.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/02/bloomberg_articlesLU283M0YHQ0X.DTL#ixzz1cd1oGIZO

[tama]

1. European leaders

are not.

Just lackeys of money makers.

[BeyondGeography]

2. The club has such nice fringe benefits

But the dues are so expensive we'd rather not pay.

[customerserviceguy]

3. Well said. n/t

[pampango]

4. We'll see if 7 in 10 support the euro only with cheaper "dues" or as is.

The referendum will either give legitimacy to the deal or set Greece on a different path. It's up to the Greeks.

Papandreou sure Greeks want to stay in euro zone

http://www.euronews.net/2011/11/03/papandreou-sure-greeks-want-to-stay-in-euro-zone/

If George Papandreou was smarting from his grilling with the French and German leaders he showed no sign of it. The Greek premier emerged from the talks calm and confident that his call to let his voters decide on the EU bailout was the right thing to do.

“It’s a democratic right. And the Greek people are, I believe, mature and wise enough to make the decision that is to the benefit of the Greek People and the country. And a positive decision for the Greek people is not only a positive decision for Greeks but for Europe,” said Papandreou.

The Greek leader revealed that the referendum could happen as early as December 4 – satisfying at least one requirement from his European partners, that of getting on with things as fast as possible.