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Greek Combat Makes Compromise Riskier Than Contagion for Europe

For Europe, compromise with Greece looks increasingly costlier than contagion.

As German Chancellor Angela Merkel and her fellow euro-area leaders cast Greece’s July 5 referendum as a choice on whether to remain in the currency, the strategy suggests confidence the rest of the 19-country region is inoculated from any infection. Having spent five years dispensing aid and brokering deals with Athens, it also reflects a shift toward worrying that the bigger risk to the euro’s integrity lies in bowing to a member’s demands.