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GREEK PM ANNOUNCES REFERENDUM THREATENING EURO ZONE WITH NEW CRISIS
PanARMENIAN.Net
November 1, 2011 - 09:25 AMT
PanARMENIAN.Net - Greek Prime Minister George Papandreou has threatened
the euro zone with a new crisis with his shock announcement that he
will hold a referendum on the last-minute bailout deal struck only
last week to try to contain the bloc's debt mountain, Reuters reports.
Euro zone leaders agreed to hand Athens a second, 130-billion-euro
bailout and a 50-percent write-down on its enormous debt to make
it sustainable.
Papandreou, whose ruling Socialist party has suffered several
defections as it pushes waves of austerity measures through parliament
while protesters rally outside, said he needed wider political
backing for the fiscal measures and structural reforms demanded by
international lenders.
"If there was to be a referendum, we may reasonably conclude that
they may not accept the austerity measures. We may conclude that it
will bring the pack of cards tumbling down," Howard Wheeldon, senior
strategist at BGC Partners in London, said.
Analysts said holding a referendum - likely to be held early next
year and only Greece's second in almost 40 years - was baffling,
given that the latest opinion poll showed a majority of Greeks took
a negative view of the bailout deal.
The immediate market reaction to the announcement was negative, the
euro extending losses against the dollar and tumbling more than 2
percent to a session low.
From: Baghdasarian
PanARMENIAN.Net
November 1, 2011 - 09:25 AMT
PanARMENIAN.Net - Greek Prime Minister George Papandreou has threatened
the euro zone with a new crisis with his shock announcement that he
will hold a referendum on the last-minute bailout deal struck only
last week to try to contain the bloc's debt mountain, Reuters reports.
Euro zone leaders agreed to hand Athens a second, 130-billion-euro
bailout and a 50-percent write-down on its enormous debt to make
it sustainable.
Papandreou, whose ruling Socialist party has suffered several
defections as it pushes waves of austerity measures through parliament
while protesters rally outside, said he needed wider political
backing for the fiscal measures and structural reforms demanded by
international lenders.
"If there was to be a referendum, we may reasonably conclude that
they may not accept the austerity measures. We may conclude that it
will bring the pack of cards tumbling down," Howard Wheeldon, senior
strategist at BGC Partners in London, said.
Analysts said holding a referendum - likely to be held early next
year and only Greece's second in almost 40 years - was baffling,
given that the latest opinion poll showed a majority of Greeks took
a negative view of the bailout deal.
The immediate market reaction to the announcement was negative, the
euro extending losses against the dollar and tumbling more than 2
percent to a session low.
From: Baghdasarian