After nations of the EU met in Brussels and voted n favour of another round of bailout for Greece, the country is on the verge of collapse due to their reluctance to accept the terms of the agreement. The Greek prime minister is holding a referendum because they are against the austerity measures which have been imposed on them by others in the European Union.
This has sent the rest of the EU into a new tailspin as France and Germany work to hold the one currency together. Plans are in place for Nicolas Sarkozy and Angela Merkel to hold an emergency meeting on Wednesday November 2. They have an agenda which includes formulating a response to Greece’s plans for a referendum.
In the meantime, the socialist government in Greece is on the verge of collapse due to the reaction to George Papandreou’s referendum. His party, Pasok, is barely held together and this call for a referendum could spark a total collapse of a government that is held together at this point by a thread. Papandreou’s Pasok party is in disagreement over the referendum and some are reported to be in disgust of his proposals.
This has sent world markets into chaos once again as we wait and watch to see if Greece will default as a result of noncompliance. After having been forced to take a loss by as much as 50% or more, European banks which invested in Greece are angered by Greece’s actions. If the referendum is successful, it is feared that the EU will split because many countries felt forced to aid Greece only to be slapped in the face for their efforts.
After Wednesday’s meeting between France and Germany, more details should be forthcoming regarding a plan to save the EU. Until then, world markets are watching and waiting.
