Europe faces modern Greek tragedy

By Business editor Peter Ryan - analysis

The possibility has loomed large for more than a year, but now Greece's exit or expulsion from the Eurozone is a real likelihood.

The warning from France and Germany that Greece will not receive another cent in European aid until the referendum is decided has dramatically raised the stakes in Europe's debt crisis.

If Greek taxpayers reject the second bailout plan approved by Eurozone leaders last week, the much feared scenario of a disorderly default by Greece appears certain.

But a Greek default would not be an isolated financial event for a struggling but small economy.

It has the real potential to trigger what Eurozone leaders have feared all along - cascading defaults by Portugal and Ireland which are also struggling to contain taxpayer anger from deepening austerity.

Why wouldn't taxpayers in Portugal and Ireland ask "why not us too"?

Read more on "The Drum" about the deepening crisis for Europe and what a moment of truth could unfold.