Eurozone policymakers will view with horror George Papandreou's decision to hold a referendum on the Greek bailout package. Less than a week after agreeing a "comprehensive" deal to resolve Europe's sovereign debt crisis, the whole thing already seems to be coming apart at the seams. The Greek prime minister's commitment to a plebiscite introduces a further element of extreme uncertainty.Merkel and Sarkozy must be jumping up and down with rage. Even if the Greeks approve the deal (which seems unlikely), Mr Papandreou can say goodbye to any future favours from the EU. So don't come back looking for any more bail-outs. Indeed, the Greeks might well be expelled from the Eurozone, regardless of the result of the referendum.
01 November 2011
Putting the cat among the pigeons
Well, that's torn it! The Telegraph puts it politely: