Greek Prime Minister George Papandreou yesterday rejected rumors he would resign as he stepped back from a contentious decision to hold a referendum on unpopular austerity measures in the face of fierce criticism from across the European Union.
“The referendum was never an end in itself,” Papandreou told the Cabinet, according to statements released by his office.
“We had a dilemma - either true assent or a referendum. I said [on Nov. 2], if the assent was there, we would not need a referendum,” Papandreou said.
European leaders warned that if Greece does not respect the terms of the rescue deal, it will not get “one more cent” from the next planned installment of EU and IMF funds. European stock markets plunged then recovered just as sharply, as storm clouds gathered over a G-20 leaders’ summit opening ceremony in Cannes, France.
Also, the European Central Bank’s new chief, Mario Draghi, surprised markets with a rate cut yesterday to calm investors’ nerves.
In another fear-easing move, the Greek government has dismissed the country’s top military brass in what some reports say was a move to thwart a coup.
Meanwhile, British bookmaker William Hill offered odds of 4/6 yesterday that Greece would cease to use the euro by the end of 2012, the first time it has bet odds-on that Athens will exit the currency.
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I wish good luck to our neighbour with all my heart. Hopefully they will get out of this mess one day . But its too difficult..
One of the solution in long term would be ; getting out of Euro currency and bring the Drahma back..But on the other hand how will they pay off their debts with useless Drahma ?
I hope and wish that Turkey will never go into this EU bankruptcy club.
Many economists predicted this, and were right. I have never supported entering the EU and should feel smug, but just feel worried.