Greek PM Calls Referendum On EU Aid Package

Discussion in 'Economics' started by DesktopCommando, Oct 31, 2011.

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  1. Greece's prime minister has called a referendum on the new EU rescue package, as a leading economist tells Sky News a no vote would be a disaster for the eurozone.

    George Papandreou said if the Greek people do not want the deal that is designed to slash the country's mountain of debt by nearly a third, it will not be adopted.

    He gave no date or other details on the proposed referendum, which would be the first in Greece since 1974.

    "This will be the referendum: the citizen will be called upon to say a big 'yes' or a big 'no' to the new loan arrangement," he told Socialist members of parliament.

    "This is a supreme act of democracy and of patriotism for the people to make their own decision ... we have a duty to promote the role and the responsibility of the citizen."

    Mr Papandreou said he would also ask for a vote of confidence to secure support for his austerity measures policy.

    The announcement comes as Greece faces delicate negotiations with its eurozone peers on the details of last week's agreement and with global bankers asked to accept a 50% loss on their Greek debt holdings.

    Speaking on Sky's Jeff Randall Live, Nobel prize-winning economist Professor Christopher Pissarides said the deal is the only solution to solve the debt crisis.

    "If it's rejected, it'll be a disaster for Greece," he said. "It'll be bad enough for the European Union and the eurozone in particular, but it'll be far worse for Greece."

    He added that a no vote would mean Greece would have to declare bankruptcy and be removed from the eurozone - and that Mr Papandreou would have to resign.

    European leaders finally agreed the elements of the deal early on Thursday morning following marathon talks in Brussels.

    It was decided banks will have to accept a 40% write-down on any Greek debt they hold - higher than the 40% they had originally tabled.

    It was also agreed that the 440bn euro (£386bn) bailout fund will be increased to around 1trn euro (£876bn).

    Mr Papandreou's decision comes a day before the leaders of the world's 20 biggest economies are set to gather in the south of France for the G20 summit.

    More follows...


    Guess he doesnt want to get shot by own people first....think its going to hell :)

    Greek PM Calls Referendum On EU Aid Package - Yahoo!
     
  2. Rather refreshing for a politician to get the decision of the electorate on such an important move for Greece, Stuff the Eurozone he represents the will of the People of Greece
     
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  3. Is a Greek national allowed to be PM of uk? Just a thought.
     
  4. We've got one as royal consort...


    Ironic that, out of all Europe's politicians, its the Greek PM who shows a bit of moral backbone.
     
  5. Auld-Yin

    Auld-Yin LE Reviewer Book Reviewer Reviews Editor

    Well, that will have Merkel & Sarkozy spitting in to their skinny lattes.

    Maybe Merkel was not joking by saying refusing to agree with her demands could mean war!
     
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  6. I wouldnt worry about it , the EU will just keep demanding Greece has referendums until they , the EU , get the result they want .
     
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  7. Whose peacekeepers are going to go in when it all goes pear shaped, they're unlikely to welcome Germans.
     
  8. I doubt very much if the Germans will care one way or the other what the Greeks think if it all goes tits up and they volunteer their services as a peace keeping force.
     
  9. Pointless. If the Greeks vote "No", then the communists in Brussles will just make them do it again...
     
    • Like Like x 1
  10. It's all starting to unravel, who's next?
     
  11. Portugal.
     
  12. Italy, they're not going to look at their neighbours telling their debtors to do one without saying "we should do that".
     
    • Like Like x 1
  13. Greece could just be a stepping stone to a general upheaval in the EU front pffice which might get those unworldly apparatchiks remembering who pays their salaries and junkets and all the other money soaking garbage that passes for "We are great guys here in brussels".
     
  14. Auld-Yin

    Auld-Yin LE Reviewer Book Reviewer Reviews Editor

    And pigs might ****ing fly!!!!
     
  15. It could also be some cooked up idea from last weeks meeting, get a deal, haircuts for Greek debt then have a referendum that the Greek gov will most likely loose..."oh too bad" Greece leaves the Euro and tries to sort it self out..

    Maybe far fetched.