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Euro crisis fears over Greek vote shock

Tuesday, November 01, 2011 - 01:54

Nov. 1 - Greek Prime Minister George Papandreou's decision to call an unexpected referendum on Greece's bailout creates climate of fear and uncertainty. Kirsty Basset reports.

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PLEASE NOTE THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL A shock decision by Greece to call a referendum on a recent bailout plan has left Europeans stunned - and markets reeling. There was also a sense of despair on the streets of Athens. (SOUNDBITE)(Greek) PENSIONER ANGELOS PARASKEVOPOULOS ,66, SAYING: "If this referendum takes place there will be no good outcome. If we vote for the IMF we are condemned, if we return to the drachma we are again condemned." (SOUNDBITE)(Greek) SHOP OWNER DORA SIGALA, 60, SAYING: "Why are they calling for a referendum after everything has already been decided? Why are they doing this? So they can shed the responsibilities and for someone else to take the responsibilities? And create problems for the Greek people? It isn't right." After more protests and defections within his party, Greek Prime Minister George Papandreou said he needed greater political backing for a second bailout package, which euro zone leaders announced less than a week ago. A poll over the weekend showed nearly 60 per cent of Greeks have a negative view of the package, suggesting it would be voted down in a referendum, likely to be held early next year. Rabobank analyst Jan Lambregts. (SOUNDBITE)(English) RABOBANK'S GLOBAL HEAD OF FINANCIAL MARKETS RESEARCH, JAN LAMBREGTS SAYING: "Although it has shown that sixty per cent is against the austerity measures, 75 per cent still support the euro, so this is essentially a referendum on the euro. If they reject the bailout and the government follows suit, then Greece will default. If Greece defaults then all bets are off of course and they will have to leave the euro zone presumably. So this is very contentious. Even though it's a very low odds scenario, it's one we could do without." It also creates a new headache for euro zone leaders meeting in Cannes for the G20 summit on Thursday, who had been hoping to send a message that Europe's debt crisis was under control. Kirsty Basset, Reuters.

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Euro crisis fears over Greek vote shock

Tuesday, November 01, 2011 - 01:54