Nervous Greeks worry Brexit may lead to Grexit

By Richard Galpin
BBC News, Athens
26 June 2016
BBC

Its people and government are embittered by the imposition of harsh austerity measures by the EU and IMF.
Those bailout conditions have brought years of deep recession and high unemployment, but have done little to reduce Greece's huge debt burden.
And as a frontline country in the migrant crisis, Greece feels let down by Brussels and EU member states, in its struggle to cope with the arrival of more than a million refugees and migrants over the past 18 months.
The anger shows in a pan-European survey published by the Pew Research Center earlier this month, in which Greeks top the table in their response to many of the questions asked.
For example, 71% of those who took part had an unfavourable view of the EU - far higher than in the UK.
More than 90% disapproved of the way the EU was handling economic issues and the migrant crisis.



And now with the UK having voted to become the first member state to leave the EU, an important precedent has been set.
Latest developments: UK votes to leave EU
EU referendum: Full coverage
Brexit: What happens now?
Uncharted territory: Can the EU save itself?
Spectre of Grexit
So could Brexit be followed by Grexit?
On the streets of Athens, it's not hard to find people delighted by the British vote to quit the EU.
"I think the decision is very good, I think they did well," says Ionna Kokka.
"It is something we and all the other countries should also have done, because the situation is unbearable for everybody.
"There are no jobs, households are on their knees and we're being suffocated from all directions."
But these are the views of the minority, with most Greeks, like the government, still in favour of being part of the EU.


Market jitters
And yet, the risk remains of Brexit precipitating the departure of Greece from the eurozone and therefore possibly the EU.
Immediately after the UK referendum result was announced on Friday, stock markets around the world plunged, as did the value of the pound.
The Athens stock exchange was particularly hard hit, with foreign investors pulling out of some of their riskier investments in Greece.
"It's going to be a turbulent summer," says the stockbroker Nikos Chryssochoidis. "Greece needs foreign investment."
"The major problem is the Greek banking sector and these stocks have been really battered. As long as they remain at these very low levels, this poses [the question] again how viable they are."
The turbulence also means it will now be more expensive for the Greek government to borrow the money it needs.
Knock-on effects
And there are concerns about the impact the sharp fall in the pound's value could have on tourism, the country's most important industry.
Already one senior official has warned of a potential "wave of cancellations" by British holidaymakers, because the weak pound will make Greece a more expensive destination.
Around two million British tourists visit the country every year.

With the Greek economy already fragile, some commentators here are pessimistic.
'I think that Greece, because of the difficulties it has faced and the challenges of the (austerity) programme it has signed, will be a prime candidate for an exit from the eurozone," says the journalist and author Yannis Palaiologos.
But the stockbroker Nikos Chryssochoidis believes it's too early to evaluate the situation.
And he argues the shock of the UK departure from the EU, and the concern other countries might follow, could help Greece, because Brussels will now feel the need to tread more softly.
"Maybe you'd be more inclined to listen to what Greece has to say about the current (austerity) programme, which is very strict," he says.
"And maybe you'd be more comfortable to alleviate Greece from the burdens."
That is certainly the hope of the government here and the Greek people.