European Commission President Jose Manuel Barroso Friday said he expects Greece to form a government of national unity and to approve its bailout package.
“I think that΄s what is going to happen [there will be a government of national unity], because what is the other option for the Greek people? To have a default and to have real difficulty paying wages to the public servants, to the schools, to the hospitals, it will mean the paralysis of the country,” Barroso said during an interview on BBC radio. “I΄m sure the majority of the Greek people are reasonable people and that they don΄t want that kind of chaos to come to their country.”
Barroso΄s comments come after Greek Prime Minister George Papandreou Thursday agreed to shelve a controversial plan for a referendum on Athens΄ latest financial bailout. Papandreou says he will now seek a bipartisan alliance with Greece΄s conservative opposition to form a national consensus on the bailout.
However, the tumultuous political situation in Greece this week has forced euro-zone leaders to contemplate the possibility that Greece may exit the euro.
Barroso said he believed it was in Greece΄s interests to remain in the single currency, but he said ultimately it was up to the Greeks to decide.
“When you are a member of any club you have to respect the rules and it is up to them whether they want to keep their position in the euro area,” he said.
(source: Dow Jones)