Greek Government Says Referendum to Latest Debt Deal

02 November 2011

More bad news for Greece, Europe and indeed the world (well anyone hoping to have some cash to retire with at least) comes as the Greek government of George Papandreou decides to have a referendum on accepting the latest debt deal, which, as always calls for more austerity in return for more bail out cash. This will, in all likelihood be tantamount to a referendum on Greece staying in the EU.

According to opinion polls taken over the weekend, 60% of Greeks want to reject the deal, but 70% want to stay in the Eurozone. Hardliners scoff at this, saying let them accept it or walk, but that is unlikely to happen. Experts expect Papandreou to submit a confidence vote this week, and even if the public vote yes a referendum will take time to organise and conduct, all the while Greece's sovereign debt mounts, and confidence in it, and the future of the EU wains. A no vote will put pressure on those managing the bail-out purse to soften the terms, which they will likely do rather than see Greece exit the Eurozone.

Greece leaving the Eurozone would not be harmful on the face of it, but it would likely signal an end of the single monetary union in Europe, and this presents a whole myriad of problems, and uncertainty; instability at a time when what we all need is to find stability. Rather than face that it is likely we will give way to Greece and soften the terms of their next bundle of bail out cash.

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