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Nation/World

Anatomy of a crisis

Wed., Nov. 2, 2011

A look at Greece’s financial upheaval:

How it got here

• Greeks are outraged by repeated rounds of tax increases and salary and pension cuts as the government struggles to meet the conditions of a $153 billion bailout it has been relying on since May 2010.

• Facing a fourth year of recession, unions have held frequent strikes, and protests have often degenerated into riots.

What’s next

• Greece’s Cabinet has voted to support Prime Minister George Papandreou’s controversial call to hold a referendum about a new European bailout plan to save the country’s economy.

• The Greek people will be asked to determine whether they want the new deal and to remain in the euro currency used by 17 European Union nations.

Consequences

• A ‘no’ vote could cause bank failures and perhaps a new recession in Europe, the market for 20 percent of American exports.

• Vote failure could cause Greece to leave the alliance of 17 nations that use the euro.


 

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