Latest Rumor: Greece To Hold Referendum On EUR Membership, i.e. Much Hated Austerity

Tyler Durden's picture

While we have heard rumors of a possible Greek referendum vis-a-vis IMF bailouts (i.e., Euro membership) in the past (as long ago as April 2010, or before the first Greek bailout, when life was actually acceptable and the retirement age was in the 50s) we have promptly dismissed such rumors: after all the EU/IMF/Troica/Status QuoTM what have you would never leave the fate of its existence in such a democratic construct as a majority vote, especially with what would be a near unanimous vote to secede. Well, it may be time to start taking these rumors seriously. Actually no, never mind.

Kathimerini reports: "As pressure from Greece’s foreign creditors and austerity-weary citizens mounts on the government, Prime Minister George Papandreou is considering calling for a referendum on whether Greece should continue to tackle its debt crisis within the eurozone or by exiting the single currency." Obviously, this is nothing but yet another political ploy. The probability of a referendum proposal actually passing and democracy reestablishing itslef in the so called cradle of democracy are sllim to nil, especially with hundreds of trillions at stake. But we'll play along with it for the time being.

Kathimerini with more on this latest idiocy:

According to sources, Papandreou hopes that the outcome of such a vote would constitute a fresh mandate for his Socialist government to continue with an austerity drive backed by Greece’s international lenders -- the European Commission, the European Central Bank and the International Monetary Fund.

 

A bill submitted in Parliament, paving the way for a referendum to be carried out, is to be discussed in coming days.

 

Sources told Kathimerini that many of Papandreou’s close aides had proposed the idea of a referendum to the premier earlier this summer. Since then, pressure has mounted on the government from all sides with Greece’s foreign creditors pushing for quicker and more effective reforms, citizens reacting to the cuts and even members of PASOK’s political council objecting to plans to slash the public sector.

 

During an emergency cabinet meeting on Sunday, several ministers are said to have pressed for drastic action, with some of them calling for early elections.

We pretty much stopped at "fresh mandate" for G-Pap.