S GREECE GOING TO LEAVE THE SINGLE CURRENCY?
A. Possibly, although it no longer looks likely that the Greek people will have the chance to vote in a referendum. The government faces a confidence vote in parliament today, with the word being that Prime Minister George Papandreou will step down no matter what the outcome. Conservatives were yesterday reported to have been scared into reversing their opposition to the Eurozone bailout, yet their leader Antonis Samaras is insistent that Papandreou must step down, and wants an interim government to be formed.
Q. WHAT IF THEY DO PULL OUT?
A. The government would be forced to default on its debts, hitting banks across Europe, and other holders of Greek debt. Contagion could spread, plus there would be severe political ramifications for the Greeks to cope with.