CANNES, France – French President Nicolas Sarkozy and Angela Merkel appeared together in front of the journalists and announced that the Greek referendum will take place on Dec. 4 or 5. Sarkozy made clear that the referendum is not about last week’s Brussels agreed deal but whether Greeks want to stay in the Euro or not. “Our Greek friends must decide whether they want to continue the journey with us.” He also said that the next loan will not be given until after the referendum. Juncker said, “it comes down to the question if yes or no, Greece wants to stay as a member of the euro area or not.”
Despite the fact George Papandreou wanted to hold the referendum in January, Sarkozy and Merkel made clear that they could not endure a long period of uncertainty and were both pleased that Papandreou agreed on Dec. 4 or 5.
German Chancellor Angela Merkel said that Germany intended to stabilise the euro zone with Greece as a member, but stabilising the euro is more important than rescuing Greece.
Greek PM who appeared alone, right after the euro-zone leaders, said that the referendum will indeed take place on Dec.4. “We trust Greek citizens. Greek people will make the right decision. Greeks want Greece to stay in the Eurozone and they will vote Yes…We are part of the euro zone and we are proud to be part of the euro zone. Being part of the euro zone means having many rights and also obligations. We can live up to these obligations,” Papandreou said. “I do believe there is a wide consensus among the Greek people and that’s why I want the Greek people to speak.”
However, the Greek PM didn’t have an answer when asked what’s going to happen if Greeks say NO!
Papandreou’s pledge to let the Greeks decide for themselves has riled financial markets and threatens to derail an entire European debt crisis plan that’s not even a week old! International observers called it a “back me or sack me” aggressive move to make sure Greeks will support the severe austerity measures coming ahead.
But a “no” vote in the referendum would have enormous consequences not just for Greece-who will see its quality of life standards decline dramatically- but for the rest of Europe. It could lead to a disorderly Greek default, force Greece out of the euro-zone, and send the global economy right back into recession.
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