To the astonishment of just about everybody the Greek Prime Minister, George Papandreou has announced a referendum on the Greek Bailout. This is akin to the passengers on the Titanic voting on whether to use the lifeboats or not.
The rationale behind this beggars belief.Without more EU money (basically read German and French money) Greece will default on its debts and slide unceremoniously out of the Eurozone.Aside from the obvious question of how they will re-introduce the Drachma overnight, the resulting financial meltdown will implode the Greek economy and possibly take the Italian one with it (Italy's finances are in a parlous position and its parliament won't make the necessary reforms).
The Greeks naturally don't like the cuts and it's opposition party is in denial, so the situation regarding public opinion is dire.The Greek people feel lied to, and it is a fact that Greek entry into the Euro was based upon the Greek government telling the EU a pack of lies regarding it's financial position.
The Greek people will have to hold their politicians accountable for this catastrophy, but for the moment silly referendums is the last card of a desperate Prime Minister.
The rationale behind this beggars belief.Without more EU money (basically read German and French money) Greece will default on its debts and slide unceremoniously out of the Eurozone.Aside from the obvious question of how they will re-introduce the Drachma overnight, the resulting financial meltdown will implode the Greek economy and possibly take the Italian one with it (Italy's finances are in a parlous position and its parliament won't make the necessary reforms).
The Greeks naturally don't like the cuts and it's opposition party is in denial, so the situation regarding public opinion is dire.The Greek people feel lied to, and it is a fact that Greek entry into the Euro was based upon the Greek government telling the EU a pack of lies regarding it's financial position.
The Greek people will have to hold their politicians accountable for this catastrophy, but for the moment silly referendums is the last card of a desperate Prime Minister.
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