The single currency of the 17-member European Union lost about 1 percent of value Tuesday morning after the prime minister of Greece announced the people he leads will decide whether the beleaguered Aegean nation will accept its next round of bailout aid, published reports indicate.
As the emblem of the debt-hobbled region, Greece accepted a bailout in June 2010. Now, Prime Minister George Papandreou opted to submit the country's top economic decision to a vote, according to The Wall Street Journal. If Greece turns down the referendum and the next tranche of international aid, the nation will spiral toward additional economic mayhem, Reuters reports.
A "no" vote by the people would likely drive Greece to default and likely influence the sovereign debt crisis to capture additional regional nations within the clench of the debt contagion.
By contrast, if Greece approves the referendum, the country will be compelled to have Brussels preside over its economic sovereignty.
Greece would have to endure nine more years of austerity budget cuts if the nation votes for the referendum.
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