Arab Today, arab today greek pm stuns eurozone with referendum call
Last Updated : GMT 03:19:16
Arab Today, arab today
Arab Today, arab today

Greek PM stuns eurozone with referendum call

Arab Today, arab today

Arab Today, arab today Greek PM stuns eurozone with referendum call

Athens - AFP

Greek Prime Minister George Papandreou plunged the euro and stock markets back into crisis on Monday with a shock announcement that he would put a hard-fought rescue deal to a referendum. With leaders of the world\'s 20 biggest economies getting ready for a summit from Thursday focused on the economic crisis, Papandreou\'s unexpected move triggered fears that the rescue efforts could begin to rapidly unravel. The premier also announced a vote of confidence but his narrow parliamentary majority was then cut by the defection of a deputy. And Vasso Papandreou, a senior member of the ruling Socialist party and head of parliament\'s economic affairs committee, said Greece needed a unity government and early elections. Analysts said the confidence and referendum votes amounted to a ballot on the future of the eurozone which is also under pressure from debt strains in Italy. All of Europe\'s main stock markets registered sharp falls at the new risk of Greek default and contagion, with the German blue-chip DAX 30 stocks index slumping by more than five percent, French shares were down over four percent and London\'s stocks fell more than three percent. Athens witnessed a meltdown as stocks plunged 6.31 percent amid warnings that a rejection of a deal that is deeply unpopular in Greece would force it to leave the 17-nation bloc which uses the euro single currency. \"This is a referendum, in which they\'re effectively voting on Greece\'s euro membership,\" Alexander Stubb, the Europe minister for Greece\'s fellow single currency member Finland, told the commercial MTV3 network. In a sign of the deep unease in European capitals, French President Nicolas Sarkozy and German Chancellor Angela Merkel were to hold talks by phone. Italian Prime Minister Silvio Berlusconi, another leader under pressure as a result of the eurozone crisis, registered his sense of shock and annoyance. \"There is no doubt the Greek decision to hold a referendum on the European Union\'s rescue plan is having a negative effect on the markets,\" he said. \"This is an unexpected decision that generates uncertaintiesafter the recent European Council and on the eve of the important G20 meeting in Cannes.\" Italian stocks plunged 6.12 percent, led by big falls for banks. Papandreou, who now has 152 deputies in the 300-seat Greek parliament, has faced increasing dissent within his own party over the tougher austerity policy monitored by the EU and the International Monetary Fund that has sparked general strikes and widespread protests, many of them violent. As well as agreeing to a referendum, which is likely to take place early next year, the prime minister will submit himself to a confidence vote in parliament to be held on Friday -- the second day of the G20 summit in Cannes. \"The command of the Greek people will bind us,\" Papandreou said as he made his stunning declaration late Monday. \"Do they want to adopt the new deal, or reject it? If the Greek people do not want it, it will not be adopted.\" Although the deal agreed last Thursday after marathon talks in Brussels included an agreement to write off 100 billion euros ($137 billion) of debt owed by Greece, the Athens government still has to implement a painful package of austerity measures to get its hands of bailout funds. In a survey in the To Vima news weekly on Sunday, 58 percent of Greeks termed the deal \'negative\' or \'probably negative\', although over 72 percent of those polled said Greece should remain in the euro. In an online commentary, the Moneycorp currency broker said Papandreou had presented Greeks with \"the ultimate Hobson\'s Choice\".\" \"They could either have their financial eyes ripped out by austerity measures or by the chaos that would follow the total bankruptcy of Greece and the wipe-out of its financial institutions,\" it said. Nicola Rossi, an opposition senator in Italy, warned the mounting cost of borrowing for the government in Rome had the potential to further scupper attempts to safeguard the euro. Under last week\'s deal, the eurozone plans to increase the stockpile of cash in a bailout fund to some one trillion euros but many observers suspect that it will be an insufficient firewall if a country of the size of Italy collapses. \"The Greek government\'s decision has unleashed havoc on the markets. It wasn\'t very well thought through,\" Rossi, an economist, told SkyTG24. \"The problem is that Italy is the weak link in the euro chain so we are under particular scrutiny.\" \"We all know that when our borrowing rate is close to seven percent our debt risks becoming unsustainable. The situation is extraordinarily serious.\" In a report released on Monday, the Organisation for Economic Cooperation and Development (OECD) said that rapid action by EU leaders to enact the rescue measures that they had agreed was key to the prospects of global recovery.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today greek pm stuns eurozone with referendum call Arab Today, arab today greek pm stuns eurozone with referendum call

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 05:26 2017 Sunday ,19 February

US natural gas market tightens

GMT 05:06 2017 Sunday ,19 February

Merkel: Euro is too low for Germany

GMT 04:58 2017 Sunday ,19 February

Swedish PM: Brexit deal in 2 years is unlikely

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum

GMT 10:20 2017 Thursday ,16 February

New Zealand's Spark rings up interim profit rise
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday