Greek Referendum Results in Confidence Vote

01 November 2011

(ATHENS, GREECE) -- Greek Prime Minister George Papandreou announced that he would put Greek’s bailout through a referendum. The referendum will allow Greek citizens to vote on whether the bailout will proceed. Papandreou’s announcement has caused members of his party to resign and call for a vote of confidence. The vote will start on Tuesday and end this week.

If Papandreou remains in power, the referendum will likely go through. Citizens of Greece have been against the austerity measures required to secure bailout funds from the troika. A recent poll suggested that 59% of Greeks thought the new package would have a negative effect on their country. Among the reasons for voting against the bailout are cuts to pensions, cuts to the public workforce, and increased taxes.

Comment – This is not the first time Papandreou has faced a confidence vote. He faced one in June and got through by a narrow margin. If the Prime Minister continues to lose support from his own party, he will likely lose power and a new government will form. The new government will not likely let a referendum go to the people of Greece. How exactly they would vote is questionable. Polls indicate they want to stay in the Euro-Zone, but do not approve of the bailout requirements. The likelihood of the Greek population voting to proceed with the bailout is 50-50. Markets around the world have felt the effects from the uncertainty surrounding Greece.

Source:

http://www.dailymail.co.uk/news/article-2056123/Greece-referendum-Wall-Street-stocks-plunge-Greek-PM-calls-bailout-vote.html

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