For ‘Brexit,' Like ‘Grexit,' It's Not About Economics

"Closer union" with Europe deeply appeals to Greeks, whose own state has failed them so badly. But it repels many Britons, whose state works just fine and who want no part of a European political union. For them, the quagmire of the euro, which Britain hasn't adopted, is a cautionary tale of what such a union could bring. How they decide between the economic benefits and political risks of staying could determine whether Britain votes to leave the EU in a June 23 referendum.

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Greece's underdeveloped, overprotected economy was poorly prepared for life inside the EU. A study led by Nauro Campos of Brunel University concluded only Greece was poorer in 2008 for having joined the EU; Britain, they reckon, was 24% richer. Eurozone membership initially brought down Greek interest rates and unleashed a borrowing binge but resulted in crisis and a six-year depression.

Yet Greeks still don't want to give up the euro. "Anglo Saxons think the euro is only an economic and financial project," said Yannis Stournaras, governor of the Greek central bank, in an interview. "It's political as well. It's a means to an identity. We feel safer in the euro."

British considerations were just the opposite. A Conservative government took Britain into the EEC in 1973 largely for its trade benefits, a decision voters overwhelmingly approved in a 1975 referendum.