Yahoo UK finance says: ATHENS (Reuters) - Greek Prime Minister George Papandreou risks a new euro zone crisis with his shock announcement that he will put the bailout deal struck last week to try to contain the bloc's debt mountain to a referendum of voters already angry at harsh cuts.
Don't worry about hte greeks. Nobody else seems to be. Worry about the Italians. When their bond yields get too high for them, then they will start to turn to the EU for funds. That is when the real crisis will kick in. The greeks can strike and protest and bich and moan all they like
If Italian risks escalate, and they turn to the EU - and they issue EU Bonds to contain their contagion - who is wanting to take the EU bonds up??? The Chinese or anybody else woudd be mad in their heads to take such an offering up.....
Selfish polticians that have only their own futures in mind - so quite happy to throw the rest of the world into chaos. Greece needs to take responsibility for the way they have run their country finances for years now.
You really think the Greek PM is being selfish? You don't think he has a duty to put the most important decision in the lives of the Greeks for the next 20 years to the vote? I wish our politicians would behave like that. Hats off to the guy, IMO. And he has put his career on the line too, with a second request for a vote of confidence. So you are looking at 2 referendums in Greece. I think the guy deserves a medal.
I tend to agree with you. I also think the Greek people will go for the bailout. 75% believe in the Euro. They are unlikely to want to go back to the drachma. They could also pull themselves out of their mess quicker than many think. They have a burgeoning tourist industry. If South Africa had a fraction of it? But I digress.
A return to the Drachma could be far worse. Their tourism 15% of GDP is dominated by package companies, airlines, car hire companies. They will still insist on Euro payments. It could get like Zimbabwe or other places where a two currency system becomes the norm. That will not be good for Greece. Long term earning Euros will be best them IMO.
NO! Greece has no industry under the EUROZONE system. Everybody wants to devalue their currency - it would be great for Greece. Tourism would boom as they undercut the competition. Unfortunately - Spain, Portugal, Italy etc. would soon follow suit.