Did someone forget to ask Papandreou what Greece thinks of the new eurozone deal? The Greek Prime Minister said on Monday that “we trust citizens” — and we’re about to find out what that means. From Reuters:
(Reuters) – The Greek government will hold a referendum on a new EU aid package, calling on voters to say whether they want to adopt it or not, Prime Minister George Papandreou said on Monday.
This may be a necessary (and desirable) domestic political move for Papandreou to minimise further protests and to shore up support in the Pasok block. But it’s still a gamble and we can’t imagine Merkel or Sarkozy are too happy, especially given the results of the most recent opinion poll of Greek voters, again reported by Reuters:
Most Greeks have responded negatively toward an EU agreement which slashed the country’s debt because they believe it harms their national sovereignty, according to a poll Saturday.
The survey published by newspaper To Vima and conducted immediately after Thursday’s summit agreement on a new 130 billion euro bailout package for debt-stricken Greece, showed that nearly 60 percent of Greeks viewed the deal as negative or probably negative.
That’s only one poll and one shouldn’t read too much into revealed preferences without a discussion of the alternatives. Staring down the proverbial barrel of a gun can also quickly change minds. We’re not Greek psephologists but a yes vote is not a sure thing (though made more likely by combining it with a vote of confidence).
And even if there is a clear yes vote, what will this do to the sequencing and timing of the bailout package agreed last week?
Related link:
Greece to call referendum on new EU aid deal – Reuters