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Fundranker Blog—Greek Referendum

Greek Referendum

Prime Minister George A. Papandreou of Greece surprised the world by announcing that he would put Europe's latest rescue package for Greece to a referendum vote of the people. After being called to the carpet by European leaders, he announced on November 2 that the referendum would be held sooner rather than later, on December 4 or 5.

Prime Minister Papandreou's coalition government faces a no confidence vote on Friday that will be very close. His razor thin majority seems to be holding and even firmed up some recently after Papandreou's cabinet unanimously upheld his call for referendum. Even if Papandreou's coalition wins the no confidence vote, however, it is not clear whether the Greek parliament will pass the referendum.

World markets celebrated the announcement of the latest rescue package with large upswings, but the Greek referendum through a monkey wrench into its quick implementation. Investors now are faced with weeks of uncertainty in the European debt crisis. World markets reacted badly and promise to be roiled for some time.

Posted 11/3/11 11:05am ET in Market