No Referendum for Greece

After a long day of world leaders at the G20 meeting discussing the European debt crises in Cannes, France, it appears there will be no referendum for Greece. Prime Minister George Papandreou conceded to the European Union and others' demand not to hold a referendum in the country.

The referendum proposed by Papandreou was to have a direct vote by Greek citizens about the austerity measures and other conceding factors in a plan made by the European Union to save Greece from bankruptcy. According to The New York Times, Papandreou said that the referendum was a way of getting Greek citizens to understand the implications of the new loan deal with the European Union.

“The question was never about the referendum but about whether or not we are prepared to approve the decisions on October 26,” Papandreou said, “What is at stake is our position in the E.U.”

The referendum was dropped when Papandreou’s political rival Antonis Samaras the leader of the New Democracy Party decided Greece should not use a referendum, according to The Guardian. Papandreou had invited the other party to become “co-negotiators” to the new loan deal, according to The New York Times.

Samara explains that Papandreou called for a referendum without the consent of anybody, according to The Guardian.

“Mr. Papandreou lies with an unbelievable ease. He told us that he informed the European leaders about the referendum. They denied this in Cannes,” said Samaras.

Papandreous’ decision to hold a referendum would have halted solutions to the European debt crises until December, according to The New York Times. This would have left the world market in uncertainty. The German chancellor, Angela Merkel, said that the European Union wants to defend the Euro with Greece, but that the referendum was too much to ask, according to Spiegel.

"We respect the decision of the Greek people. But we are not going to give up the euro," said Merkel.

Papandreou’s power is now waning as Samaras and the New Democracy want his resignation, according to The Guardian. Samaras is prepared to back a unity government but one that ratifies the new loan deal. Not a long term coalition government like Papandreou had wanted, according to The Guardian.

The Finance Minister of Greece, Evangelos Venizelos, said that now the government has to seek approval from its parliament to ratify the new loan deal proposed by the European Union, according to The New York Times. The loan deal must receive a full majority of 180 rather than the simple majority of 151 in parliament because of the great influence of this deal, according to The New York Times.

Photo By: Phault.