European Union warns Greece against drama over referendum to stay

Tired of Greek illusion over the decision to withdraw from European Union to avoid damage to Greek currency, the EU threatens to expel.

European leaders—French Prime Minister Nicolas Sarkozy and German Chancellor Merkel told Greek leader that Greece should help EU to stabilize euro instead of withdrawing to save its own national currency. The leaders also warned Greek Prime Minister George Papandreou that if Greece pulls itself from the union, they would stop providing any aid to the country. The meeting between EU leaders and Greek premier was held in in Cannes.

Following this dilemma, France’s biggest bank BNP Paribas also pulled its exposure to Greece, Spain and Italy to safeguard its balance sheet by reducing the total amount by $17 billion.

Greece was expected to receive an additional aid of 8 billion euro from EU in Novemeber.

German Chancellor Merkel stated during a news conference that she desired Greece to stay as a member of EU and help in stabilizing Euro.

Following the warning, Papandreou talked with Greek finance minister by calling emergency Cabinet meeting in Athens to solve the crisis and seek for a midway.

At the same time, Brazil, Russia, India, China and South Africa also gathered to discuss and solve economic crisis in G20 summit that ended recently.