I fully understand why Papandreou stated it will run a referendum and why Greece wants it on the Eurozone debt pardon and solutions that were negotiated last week. He needs to put the power back on his voters hands. Or, at least make them feel it.
Because, actually, there aren't many solutions. Greece debt level and deficit, its chronical low level of tax revenues vs Governmental spend ruin any smooth solution. Greece is put between 2 choices: if it accepts the Eurozone solution, part of its debt will be pardoned, the country will move out of sovereign debt markets for the next 20 years and it has to live off European assistance; if it rejects it, it will default on its debt, don't get European support and not have money to pay its social policies and current public salaries - in a word, bankrupt.
Still, it is a sovereign decision. And I believe Greeks should do it directly. But it really is a high risk gamble without a positive outcome either way. And trully jeopardizing the Euro...
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