REUTERS: Prime Minister George Papandreou’s shock decision to call a referendum on Greece’s bailout drew veiled threats from Germany on Tuesday and hammered markets edgy over the euro zone crisis.
European politicians complained that Athens was trying to wriggle out of the rescue deal agreed only last week, concerned not so much about the fate of Greece as the possibly dire consequences for the entire currency union.
One senior German parliamentarian suggested the euro zone might have to cast Athens adrift, cutting off its aid lifeline and allowing the nation to default… (more)
EDITOR: Two things: 1) Papandreou has finally figured out that he represents Greece and not European and American bankers. 2) “Casting Athens adrift” might well be the best solution for all concerned. Given its own currency, the Greeks could better compete on the world market as well as reduce imports. It would also be free to negotiate the proposed 50% reduction on its debt.
However, we readily admit that the implications of going off the Euro are beyond our knowledge and perhaps hard for anyone to fully appraise.
