Why Greek vote is positive (not negative) for Euro and investors

In The AFR I argue that the surprise decision of the Greek PM to call a referendum on whether to accept the Eurozone bail-out proposal, which has rocked markets, should be a big net plus for investors and the currency union. There's no doubt that traders are tearing their hair out in frustration with the never-ending Greek-Euro impasse, which feels like the tail wagging the dog given Greece only has 11m residents and an economy smaller than Israel's. But in view of the strong local support inside Greece for staying inside the Eurozone (70-80%), and polls indicating a majority (57%) want to accept the bail-out deal, the referendum is likely to be the crucial development that breaks the dead-lock. Momentum behind a "yes" vote, which Greek Finance Minister Yanis Varafoukis has already conceded is likely, will build as Greeks reflect on what life is like with their banks, ATMs and stockmarket shuttered and on the brink of collapse. Click on this link to read my AFR column for free (VIEW LINK)