Report warns Greek euro exit would cause major problems - WAOW - Newsline 9, Wausau News, Weather, Sports

Report warns Greek euro exit would cause major problems

ATHENS, Greece (AP) -

As they prepare for an election next month that could determine whether their country will remain a part of the euro currency, Greeks are being warned that leaving the euro could have some dire consequences.

The country's largest bank has published a study saying Greeks would lose more than half of their annual income -- and there would be a dramatic rise in unemployment and inflation. It says unemployment would rise to 34 percent, while inflation would hit 30 percent and then higher.

Unemployment in Greece currently stands at around 22 percent, while inflation is 2 percent.

There are concerns across Europe of financial turmoil if Greece's place in the joint currency is threatened by a victory by an anti-austerity party.

Greece, which is crippled by debt, has been kept afloat by huge international rescue loans. They were granted on the condition that Greece adopt some harsh cutbacks and reforms that slashed living standards.

The result has been political stalemate in Greece, with no party able to form a coalition after elections three weeks ago.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

Powered by Frankly