Editorial
Greece under spotlight
EU bailout package or referendum?
The Greek bailout package by the European Commission was almost certain after France and Germany, the two biggest economies of the European Union, had decided that this was the only viable method to help Greece and the Eurozone in general with its profound financial problems. However, in a surprise announcement on Tuesday, the Greek Prime Minister, George Papandreou, declared that Greece will first hold a referendum on some key issues of the bailout package plan later this year.
In October, European leaders had agreed to provide a 100 billion Euro rescue program to Greece.
The other EU countries fear that Greece could default on its debts, thus causing a string of government defaults which could eventually break up the Euro currency union. There is also the fear that a referendum could result in a majority vote by Greek citizens to pull out of the Euro, thus putting the currency and global economy as a result at risk.
The European Commission insists that without the agreement of Greece to the EU/IMF bailout program, the lives and financial conditions of Greek citizens would be very negatively affected. The EC also urgently appeals for a national and political unity in Greece.
The Greek government has struggled to balance its budget and contain its debt but very unpopular measures have caused riots and protests all over the country throughout this year.
It is still unclear what the Greek government will propose in this referendum or if it will even materialize. However, what seems clear is that the European economies depend heavily on the outcome of what pans out in Greece. The future of the Euro, to a certain extent, may lie in the decisions which will be taken in the coming days at the G20 Summit in France.
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