News / Europe

Greek Vote Could Lead to Eurozone Departure

Aides and security officers watch as Greek Prime Minister George Papandreou arrives at an urgent cabinet meeting in the Greek parliament in Athens, Greece, November 3, 2011.
Aides and security officers watch as Greek Prime Minister George Papandreou arrives at an urgent cabinet meeting in the Greek parliament in Athens, Greece, November 3, 2011.

Greek Prime Minister George Papandreou's call for his countrymen to vote on a European debt-relief plan has raised the possibility that Greece could become the first country to abandon Europe's common euro currency.

The language of a referendum question has not yet been set. But Greek and European officials already are saying the vote's significance can be simplified to a question of whether Greece wants to remain as one of the 17 countries that use the euro.

Surveys in Greece show that voters want to stay in the eurozone and keep the euro as its currency. Yet there is widespread anger at the continent-wide debt relief plan that demands that Greeks carry out austerity measures over the next several years in exchange for absolving the government of $140 billion of its debt.

Eurozone fallout

Quitting the eurozone could have widespread ramifications for both Greece and other European countries. It could lead to a run on Greek banks, a financially calamitous default on much or all of the government's nearly $500 billion in debts, and a return to use of a devalued drachma currency. International financial markets could stop buying the country's bonds, leaving it short of cash.

Banks in other countries could face huge immediate losses if Greece fails to repay its obligations to them. That, in turn, could lead to new international economic turmoil that Europe's leaders thought they had resolved with last week's agreement, and possibly spawn another worldwide recession.

The common euro currency took effect in 1999, but Greece has been one of its weakest financial links. The government has run up huge deficits that have forced its European neighbors and the International Monetary Fund to approve two Greek bailouts in the last year and a half.

Greek control

Advocates of an exit from the eurozone and a return to the drachma say it would give Greece more control of its affairs. One Greek economist, Stergios Skaperdas, now a U.S. university professor, said that staying in the eurozone will mean that "all important fiscal decisions will be made outside the country." He said the country is now subject to "private discussions" between German Chancellor Angela Merkel and French President Nicolas Sarkozy, the leaders of Europe's two strongest economies.

Skaperdas said that an involuntary default on the country's debt would prove more effective over time than a partial cut in its debt, like that called for in last week's agreement. He said the country could immediately stop paying interest on its loans, deal with short-term sacrifices and then control its destiny.

Some information for this report was provided by AP and AFP.

You May Like

UN Report Exposes Widespread Boko Haram Atrocities

Damning report graphically details pattern of vicious, widespread atrocities committed by Islamist militants More

Russia’s Prosecutor General to Review Legality of Baltics Independence

Move, announced Tuesday, has alarmed Baltic States and strained even further their increasingly tense ties with Moscow More

US Urged to Keep Up Pressure on Cuba Rights

Communist government continues to hold dozens of political prisoners, tightly restricts freedom of expression, uses threats, intimidation to discourage critics, according to activist groups More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Hate Groups Spread Influence Via Interneti
X
Mike O'Sullivan
June 30, 2015 8:20 PM
Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video US Silica Sand Mining Surge Worries Illinois Residents, Businesses

Increased domestic U.S. oil and gas production, thanks to advances known as “fracking,” has created a boom for other industries supporting that extraction. Demand for silica sand, used in fracking, could triple over the next five years. In the Midwest state of Illinois, people living near the mines are worried about how increased silica sand mining will affect their businesses and their health. VOA’s Kane Farabaugh has more in this first of a series of reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.
Video

Video Texas Defies Same-Sex Marriage Ruling

Texas state officials have criticized the US Supreme Court decision giving same-sex couples the right to marry nationwide. The attorney general of Texas says last week's decision did not overrule constitutional "rights of religious liberty," and therefore officials performing wedding services can refuse to perform them for same-sex couples if it is against their religious beliefs. Zlatica Hoke reports on the controversy.
Video

Video Syrians Flee IS Advance in Hasaka

The Syrian government said Monday it has taken back one of several districts in Hasaka overrun by Islamic State militants. But continued fighting elsewhere in the northern city has forced thousands of civilians from their homes. In this report narrated by Bill Rodgers, VOA Kurdish Service reporter Zana Omer describes the scene in Amouda, where some of the displaced are taking refuge.
Video

Video Rabbi Hits Road to Heal Jewish-Muslim Relations in France

France is on high alert after last week's terrorist attack near the city Lyon, just six months after deadly Paris shootings. The attack have added new tensions to relations between French Jews and Muslims. France’s Jewish and Muslim communities also share a common heritage, though, and as far as one French rabbi is concerned, they are destined to be friends. From the Paris suburb of La Courneuve, Lisa Bryant reports about Rabbi Michel Serfaty and his friendship bus.
Video

Video S. Korea Christians Protest Gay Rights Festival

The U.S. Supreme Court decision mandating marriage equality nationwide has energized gay rights supporters around the world. Gay rights remain a highly contentious issue in a key U.S. ally, South Korea, where police did a deft job Sunday of preventing potential clashes between Christian protesters and gay activists. Kurt Achin reports from Seoul.
Video

Video Saudi Leaks Expose ‘Checkbook Diplomacy’ In Battle With Iran

Saudi Arabia’s willingness to wield its oil money on the global diplomatic stage appears to have been laid bare, after the website WikiLeaks published tens of thousands of leaked cables from Riyadh’s Ministry of Foreign Affairs. VOA's Henry Ridgwell reports.
Video

Video Nubians in Kenya Face Land Challenges

East Africa's ethnic Nubians have a rich cultural history that dates back thousands of years, but in Kenya they are facing hardships, including the loss of lands they have lived on for generations. They say the government has reneged on its pledge to award them title deeds for the plots. VOA's Lenny Ruvaga reports.
Video

Video Military Experts Question New Russian Tank Capabilities

Russia has been showing off its new tank design – the Armata T-14. Designers claim it is 20 years ahead of current Western designs - and driving it feels like playing a computer game. But military analysts question those assertions, and warn the cost could be too heavy a burden for Russia’s struggling economy. Henry Ridgwell reports.
Video

Video In Kenya, Police Said to Shoot First, Ask Questions Later

An organization that documents torture and extrajudicial killings says Kenyan police were responsible for 1,252 shooting deaths in five cities, including Nairobi, between 2009 and 2014, representing 67 percent of all gun deaths in the areas reviewed. Gabe Joselow has more from Nairobi.
Video

Video In Syrian Crisis, Social Media Offer Small Comforts

Za’atari, a makeshift city in Jordan, may be the only Syrian refugee camp to tweet its activities, in an effort to keep donors motivated as the war in Syria intensifies and the humanitarian crisis deepens. Inside the camp, families say mobile phone applications help hold together families that are physically torn apart. VOA’s Heather Murdock reports.

VOA Blogs