The European Tipping Point: What Will Greece Do?
By Michelle Caruso-Cabrera
June 12, 2012
How is it that a small nation with only 11 million people and an economy not even one-tenth of the United States could be so important?
Because the stability of the global economy hangs in the balance as Europe awaits the results of the Greek presidential election on June 17. The election is seen as a proxy for a much larger question: Do the Greeks want to stay in the euro zone – or not?
Meanwhile this week European leaders are scrambling to come up with money and a plan for stabilizing Spanish banks.
Even in the midst of the U.S. election season when domestic politics would normally be paramount, President Obama discussed Greece at a recent news conference. “We recognize the sacrifices that the Greek people have made, and European leaders understand the need to provide support if the Greek people choose to remain in the euro zone,” he said. “But the Greek people also need to recognize that their hardships will likely be worse if they choose to exit from the euro zone.”