The Greek Parliament passed the necessary austerity measures needed to secure further loans to prevent the country falling into bankruptcy, but now it will be up to the people.
The Greek people have constantly shown their displeasure at such austerity measures. Greece and its Prime Minister is in a Catch 22 situation.
It is obvious when you think about it, that EU countries have a vested interest in Geece staying solvent. If they did not they would probably have already given up the ghost as far as Greek economic woes are concerned. The EU has been bailing Greece out on a monthly basis and each month Greece looks as if it will be unable to pay its debts.
If Greece were a person who was struggling to stay financially solvent there could be a time when bankruptcy was the only option. Sadly that could be the case in the future for Greece. Bankruptcy would chaos in Europe but why delay the inevitable? If it is to be then to keep bank rolling Greece is pointless.
One thing that will bring Greek debt to a head is a referendum. The Prime Minister is to let the people decide. In a move which the UK government would not dare leave to the UK people, Papandreou said, if 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. Strong words which could spell disaster for many countries around the world.
As yet the Greek PM has given no further details of the proposed referendum. It will have to be held soon for Greece to either secure further bail outs or default on loans and go into bankruptcy. He said, "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. 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."
Well said but many EU leaders will be taking a sharp intake of breath right now. Hold onto your hats it looks like we in Europe could be in for a bumpy ride.