Greek economy referendum
Encyclopedia
A referendum
to decide whether or not Greece
was to accept the conditions under which the EU
, the IMF
and the ECB
would allow a 50% haircut
of Greek debt owed to private creditors. However, Prime Minister George Papandreou
decided to cancel the referendum on 3 November if the opposition parties vote in favour of the EU deal. The proposed referendum was later canceled.
announced the referendum saying that: "We need wide consensus (for the aid programme). We are part of the eurzone [which means] many rights and many obligations. We will live up to our obligations."
Constitutional issues have arisen with regards to such a referendum, as Article 44 of the constitution of Greece
specifies that referenda on critical national matters and social bills are permitted while referenda on fiscal bills are not. This will be Greece's first referendum not having to do with a change in the form of government, and the first referendum since 1974.
specified that the referendum would take place in 2012, after the plans for the haircut have been finalised. Other sources put the date of the referendum to December 2011. According to Nicolas Sarkozy
the referendum will take place on 4 or 5 December 2011.
as something positive. The same survey showed that 66% of Greeks viewed the return to the drachma as something negative.
leader Antonis Samaras
described it as an "indirect national schism", while most opposition parties demanded elections and condemned the government for what they perceived to be a maneuvre to avoid early elections. Konstantinos Mitsotakis, Prime Minister of Greece between 1990 and 1993, described the move to hold a referendum as utterly irrational and irresponsible. The Greek media also adopted a negative stance, with many calling it a coercive move.
Following the announcement of the referendum on 31 October 2011, 1 November saw the resignation of one MP from the ruling party, lowering Papandreou's government majority to 152 seats in the 300-seat Hellenic Parliament
. An additional six members of Papandreou's Panhellenic Socialist Movement
have demanded early elections.
In the early hours of 2 November, 2011, George Papandreou and his cabinet decided to speed up the referendum process, and attacked the Greek media by calling them bankrupt and that they have "gone mad" over the referendum. Additionaly the cabinet decided that a committee will be set up to decide the time when the referendum will take place and the question that people will be asked to vote on, but only after the basic characteristics of the new memorandum with the Troika have been decided. During that cabinet meeting, a number of ministers expressed concerns over the referendum.
Financial markets
The Athex stock market index fell amid concerns for instability,http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_04/11/2011_413373 as well as global financial markets on concerns about EU stability and a possible Greek default on its debt.
for the 2011 G-20 Cannes summit
, where Papandreou faced pressure to call off the referendum, New Democracy's spokesman Yiannis Michelakis said that "the comments made by Mr Papandreou, as well as those by [French President] Nicolas Sarkozy and [German Chancellor] Angela Merkel
, revealed that he suggested to them that in Greece there is a supposed questioning of whether Greece should remain in the eurozone and the European Union. It is clear that no such problem exists and that Mr Papandreou – through sudden and despicable misinformation – is trying to create it himself." Party chairperson Antonis Samaras also said that "the only problem that exists is Mr Papandreou remaining as prime minister,” said Michelakis. “He is dangerous and he has to go."
The referendum was later canceled amidst domestic and foreign pressure. U.S. President Barack Obama
said that though the G20 summit in Cannes sought to alleviate European sovereign debt concerns the "actions of Papandreou and the referendum issue got a lot of people nervous" and the EU proposal was "still the best recipe." Dutch Prime Minister Mark Rutte
said the cancellation was a good decision amidst possible eurozone impatience with Greece. "It was a bizarre proposal. We think it’s of great importance to the eurozone that we prevent Greece from going bankrupt. But in the end, the euro is more important than Greece’s membership of the eurozone." Conversely former German Chancellor Gerhard Schroeder said that: "It’s no surprise Papandreou hardly had a chance to push through what was being demanded from him. The conservatives across Europe did very little to convince the Greek conservative opposition to stop acting irresponsibly."
. On 3 November, two other members of Papandreou's parliamentary group announced they would not give the government a vote of confidence. This lowers the ruling party's parliamentary group votes to 150, which is below the threshold for majority in the parliament (151 seats). Dimitris Lintzeris, a PASOK MP, said that "Papandreou is past" and that "he continues to act carelessly and turns his failure into a coercive [referendum]".
Amid concerns that Greece could leave the eurozone dependent on the referendum result, Papandreou faced a vote of confidence in parliament on 4 November. He said that "I ask for the vote of confidence to avert the instability that would be caused if the country is dragged into elections. Now is the time for cooperation with good intentions and a feeling of national responsibility." Before the vote he pledged to step down saying that re-election was not important to him, thus avoiding infighting within PASOK; he also said that he would seek a coalition government for four months in order to pass the new EU debt agreement, though New Democracy rejected such a motion to join a coalition government. The motion passed with a vote of 153-145 in the 300 seat parliament, after PASOK's 152 MPs and Louka Katseli
, formerly a member of PASOK, supported the prime minister. She was then brought back into the party fold.http://english.aljazeera.net/news/europe/2011/11/2011114212835975841.html
Following the vote of confidence, Papandreou met President Karolos Papoulias
the next day to begin talks on forming a new coalition government. Papandreou also said that he would resign and allow another interim prime minister. Though New Democracy's Samaras demanded a snap election
, an interim coalition government could possibly involve Popular Orthodox Rally
. Democratic Alliance
and/or the Democratic Left
. However, Democratic Alliance chairperson Dora Bakoyannis
said that an interim government to pass the EU demanded austerity measures must include New Democracy to make the government viable. Bakoyiannis also added that "there is no point in us supporting Papandreou without Samaras, we don't have enough votes to make a difference anyway. We'll support a coalition and vote with them, without any demands of positions, if Papandreou and Samaras can work it out." Though Samaras continued to demand a new election in saying that was the only option for "stabilisation of the country, to restore its image, and to emerge sooner from this nightmare," he also added that an interim coalition government was a good idea in order to pass the bailout bill. Papandreou also said that: "My aim is to immediately create a government of co-operation. A lack of consensus would worry our European partners about our country's membership of the eurozone." He added that forming a coalition meant that he would "do whatever I can to help form a coalition government. The Oct. 26 decisions and obligations stemming from this are a condition for the country remaining in the euro." An anonymous member of PASOK suggested that Papandreou believed that Venizelos was the most appropriate person to head am interim coalition government as "Venizelos is the main negotiator in Europe, so there will be continuity, although New Democracy is fiercely against this proposal." Papandreou also hoped that a new government would be formed by 7 November, before eurozone finance ministers meet in Brussels to discuss the next scheduled bailout fund for Greece. However, according to PASOK, Papandreou would not resign until there was clarification on who would lead the coalition government and that he wanted a new government in the following week. LAOS also added that Samaras should reconsider his position as forming a coalition government has been "achieved with the departure of Papandreou from power."
Finance Minister Evangelos Venizelos added that an interim administration would serve until the end of February, after which a new election
would be called following the passage of the 8-billion-euro loan tranche. Papandreou added that "elections at this moment not only equal disaster but could not take place in the best interest of the people. There is one solution. To support the [EU bailout] deal with a multiparty approach, without elections, with a strong government" and that he sought to "immediately create a government of co-operation [because] a lack of consensus would worry our European partners about our country's membership of the eurozone." An unnamed senior member of PASOK said that Papandreou would resign as soon as a new government is formed, possibly on the night of 6 November.http://english.aljazeera.net/news/europe/2011/11/201111613435173466.html
On 6 November, Papandreou and Samaras agreed to the formation of a new coalition government that would not be led by Papandreou following a meeting with Papoulias. Papoulias' office issues a statement that read the leader of the government would be decide by the leaders of the largest parties the following day, but it did no mention the tenure of the government. However, Papandreou said that "it is clear that this government will pass the baton but it will not pass it to a void - it will pass it to a new government, if we agree on it, and I hope this will happen soon. I'm not interested in being prime minister in the new government;" he also added that a new election should not be held before February or March until the bailout legislation is approved by parliament The announcement also followed an European Union deadline before a finance minister meeting on 7 November about the formation of a government and the enactment of a bailout agreement. Papoulias said that "an agreement was reached to form a new government to immediately lead the country to elections after ratifying the decisions taken by the European Council."
Lucas Papademos
was suggested as the possible leader of a new government.http://www.guardian.co.uk/world/2011/nov/07/lucas-papademos-frontrunner-greek-pm He later agreed to be the interim prime minister until a future election. At the last minute there was controversy over Papademos amongst both PASOK and New Democracy and a joint announcement for the new PM was put off till 10 November. Samaras blamed PASOK for the delay saying that the constitution
demanded that the ruling party had the prerogative to name a candidate for prime minister.
In what Al Jazeera called an "apparent farewell address" Papandreou said on television that: "We have agreed on someone who will unite us. I would like to wish every success to the new prime minister and of course the new government. I will stand by them and I will support them with all my strength."
José Manuel Barroso and President of the European Council
Herman Van Rompuy
have issued a joint statement expressing their faith in the agreement of 27 October 2011 and that the country will honour the agreements it has made with the Eurozone
and the world. Joseph Daul
, chairman of the European People's Party in the European Parliament
, characterised the move to hold a referendum as "verging on a violation of the Maastricht Treaty
."
International: Central Bank Governor Mark Carney stressed the importance of Greece seeking democratic support for the proposed economic restructuring.: President
Nicolas Sarkozy
, said that he was 'appalled' by the move to bring the agreement to a referendum.: The Ministry of Finance described the move as an internal development and declined to make a statement.: Prime Minister
Silvio Berlusconi
said the decision to move to a referendum was surprising and having a negative impact on the markets.: The Chancellor of the Exchequer
George Osborne
said "The decision of the Greek prime minister
has added to the instability and uncertainty in the Eurozone.": White House Press Secretary
Jay Carney
expressed the U.S. government's opinion that the move to put the bailout deal to a referendum shows that Europe needs to implement the agreement rapidly.
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
to decide whether or not Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
was to accept the conditions under which the EU
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
, the IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the ECB
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
would allow a 50% haircut
Haircut (finance)
In finance, a haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral. The size of the haircut reflects the perceived risk associated with holding the asset...
of Greek debt owed to private creditors. However, Prime Minister George Papandreou
George Papandreou
Georgios A. Papandreou , commonly anglicised to George and shortened to Γιώργος in Greek, is a Greek politician who served as Prime Minister of Greece following his party's victory in the 2009 legislative election...
decided to cancel the referendum on 3 November if the opposition parties vote in favour of the EU deal. The proposed referendum was later canceled.
Background
On 31 October 2011, Prime Minister George PapandreouGeorge Papandreou
Georgios A. Papandreou , commonly anglicised to George and shortened to Γιώργος in Greek, is a Greek politician who served as Prime Minister of Greece following his party's victory in the 2009 legislative election...
announced the referendum saying that: "We need wide consensus (for the aid programme). We are part of the eurzone [which means] many rights and many obligations. We will live up to our obligations."
Constitutional issues have arisen with regards to such a referendum, as Article 44 of the constitution of Greece
Constitution of Greece
The Constitution of Greece , was created by the Fifth Revisional Parliament of the Hellenes and entered into force in 1975. It has been revised three times since, most significantly in 1986, and also in 2001 and in 2008. The Constitutional history of Greece goes back to the Greek War of...
specifies that referenda on critical national matters and social bills are permitted while referenda on fiscal bills are not. This will be Greece's first referendum not having to do with a change in the form of government, and the first referendum since 1974.
Date
Papandreou suggested the referendum would be held on 4 December. However, Finance Minister Evangelos VenizelosEvangelos Venizelos
Evangelos Venizelos is a Greek politician, currently Deputy Prime Minister and Minister for Finance of Greece since 17 June 2011...
specified that the referendum would take place in 2012, after the plans for the haircut have been finalised. Other sources put the date of the referendum to December 2011. According to Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
the referendum will take place on 4 or 5 December 2011.
Opinion polls
Polls in Greece suggest that up to 60% of Greeks are against the deal reached with the EU over Greek debt on 27 October 2011, however a survey in September 2011 showed that 63% of Greeks viewed the euroEuro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
as something positive. The same survey showed that 66% of Greeks viewed the return to the drachma as something negative.
Domestic
The initial response of the Greek political parties was negative. New DemocracyNew Democracy (Greece)
New Democracy is the main centre-right political party and one of the two major parties in Greece. It was founded in 1974 by Konstantinos Karamanlis and formed the first cabinet of the Third Hellenic Republic...
leader Antonis Samaras
Antonis Samaras
Antonis Samaras is a Greek economist and politician who has been leader of New Democracy, Greece's major conservative party and main opposition party, since 2009. A Member of Parliament for Messenia, he was Minister of Finance in 1989, then Minister of Foreign Affairs from 1989 to 1990 and again...
described it as an "indirect national schism", while most opposition parties demanded elections and condemned the government for what they perceived to be a maneuvre to avoid early elections. Konstantinos Mitsotakis, Prime Minister of Greece between 1990 and 1993, described the move to hold a referendum as utterly irrational and irresponsible. The Greek media also adopted a negative stance, with many calling it a coercive move.
Following the announcement of the referendum on 31 October 2011, 1 November saw the resignation of one MP from the ruling party, lowering Papandreou's government majority to 152 seats in the 300-seat Hellenic Parliament
Hellenic Parliament
The Hellenic Parliament , also the Parliament of the Hellenes, is the Parliament of Greece, located in the Parliament House , overlooking Syntagma Square in Athens, Greece....
. An additional six members of Papandreou's Panhellenic Socialist Movement
Panhellenic Socialist Movement
The Panhellenic Socialist Movement , known mostly by its acronym PASOK , is one of the two major political parties in Greece. Founded on 3 September 1974 by Andreas Papandreou, in 1981 PASOK became Greece's first social democratic party to win a majority in parliament.The party is a socialist party...
have demanded early elections.
In the early hours of 2 November, 2011, George Papandreou and his cabinet decided to speed up the referendum process, and attacked the Greek media by calling them bankrupt and that they have "gone mad" over the referendum. Additionaly the cabinet decided that a committee will be set up to decide the time when the referendum will take place and the question that people will be asked to vote on, but only after the basic characteristics of the new memorandum with the Troika have been decided. During that cabinet meeting, a number of ministers expressed concerns over the referendum.
Financial markets
The Athex stock market index fell amid concerns for instability,http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_04/11/2011_413373 as well as global financial markets on concerns about EU stability and a possible Greek default on its debt.
Cancellation
On 3 November, Papandraou reneged on his promise and announced that the referendum will not take place afterall following the opposition of four ministers, including Finance Minister Evangelos Venizelos, who opposed the referendum amid calls for Papandrou to resign.http://www.bbc.co.uk/news/world-15575198 He said that the Greek presence in the eurozone "cannot depend on a referendum." Several MPs also resigned following the decision, with Nikos Salayannis said that: "The referendum is dead."http://english.aljazeera.net/news/europe/2011/11/201111310743878884.html In response, global financial markets rose.http://economictimes.indiatimes.com/markets/global-markets/greece-crisis-asian-shares-rally-over-3-on-hopes-greece-will-drop-referendum/articleshow/10604191.cms Following an emergency visit to CannesCannes
Cannes is one of the best-known cities of the French Riviera, a busy tourist destination and host of the annual Cannes Film Festival. It is a Commune of France in the Alpes-Maritimes department....
for the 2011 G-20 Cannes summit
2011 G-20 Cannes summit
The 2011 G-20 Cannes Summit is the sixth meeting of the G-20 heads of government in a series of on-going discussions about financial markets and the world economy....
, where Papandreou faced pressure to call off the referendum, New Democracy's spokesman Yiannis Michelakis said that "the comments made by Mr Papandreou, as well as those by [French President] Nicolas Sarkozy and [German Chancellor] Angela Merkel
Angela Merkel
Angela Dorothea Merkel is the current Chancellor of Germany . Merkel, elected to the Bundestag from Mecklenburg-Vorpommern, has been the chairwoman of the Christian Democratic Union since 2000, and chairwoman of the CDU-CSU parliamentary coalition from 2002 to 2005.From 2005 to 2009 she led a...
, revealed that he suggested to them that in Greece there is a supposed questioning of whether Greece should remain in the eurozone and the European Union. It is clear that no such problem exists and that Mr Papandreou – through sudden and despicable misinformation – is trying to create it himself." Party chairperson Antonis Samaras also said that "the only problem that exists is Mr Papandreou remaining as prime minister,” said Michelakis. “He is dangerous and he has to go."
The referendum was later canceled amidst domestic and foreign pressure. U.S. President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
said that though the G20 summit in Cannes sought to alleviate European sovereign debt concerns the "actions of Papandreou and the referendum issue got a lot of people nervous" and the EU proposal was "still the best recipe." Dutch Prime Minister Mark Rutte
Mark Rutte
Mark Rutte is a Dutch politician who has been Prime Minister of the Netherlands since 14 October 2010, as well as Minister of General Affairs in the Rutte cabinet...
said the cancellation was a good decision amidst possible eurozone impatience with Greece. "It was a bizarre proposal. We think it’s of great importance to the eurozone that we prevent Greece from going bankrupt. But in the end, the euro is more important than Greece’s membership of the eurozone." Conversely former German Chancellor Gerhard Schroeder said that: "It’s no surprise Papandreou hardly had a chance to push through what was being demanded from him. The conservatives across Europe did very little to convince the Greek conservative opposition to stop acting irresponsibly."
Vote of confidence
During discussions for a vote of confidence, was held on 4 November 2011, Evangelos Venizelos, the Greek Minister of Finance, expressed his view that the decision on whether or not Greece should remain in the Eurozone is not something that should not be put to a referendum, and called for a government of national unityNational unity government
A national unity government, government of national unity, or national union government is a broad coalition government consisting of all parties in the legislature, usually formed during a time of war or other national emergency.- Canada :During World War I the Conservative government of Sir...
. On 3 November, two other members of Papandreou's parliamentary group announced they would not give the government a vote of confidence. This lowers the ruling party's parliamentary group votes to 150, which is below the threshold for majority in the parliament (151 seats). Dimitris Lintzeris, a PASOK MP, said that "Papandreou is past" and that "he continues to act carelessly and turns his failure into a coercive [referendum]".
Amid concerns that Greece could leave the eurozone dependent on the referendum result, Papandreou faced a vote of confidence in parliament on 4 November. He said that "I ask for the vote of confidence to avert the instability that would be caused if the country is dragged into elections. Now is the time for cooperation with good intentions and a feeling of national responsibility." Before the vote he pledged to step down saying that re-election was not important to him, thus avoiding infighting within PASOK; he also said that he would seek a coalition government for four months in order to pass the new EU debt agreement, though New Democracy rejected such a motion to join a coalition government. The motion passed with a vote of 153-145 in the 300 seat parliament, after PASOK's 152 MPs and Louka Katseli
Louka Katseli
Louka Katseli is the former Greek Minister for Labour and Social Security.-Early life and education:...
, formerly a member of PASOK, supported the prime minister. She was then brought back into the party fold.http://english.aljazeera.net/news/europe/2011/11/2011114212835975841.html
New government
Following the vote of confidence, Papandreou met President Karolos Papoulias
Karolos Papoulias
-Honours:*Knight Grand Cross with Grand Cordon of the Order of Merit of the Italian Republic *Knight Grand Cross of the Grand Order of King Tomislav *Knight of the Order of the Elephant- External links :*...
the next day to begin talks on forming a new coalition government. Papandreou also said that he would resign and allow another interim prime minister. Though New Democracy's Samaras demanded a snap election
Snap election
A snap election is an election called earlier than expected. Generally it refers to an election in a parliamentary system called when not required , usually to capitalize on a unique electoral opportunity or to decide a pressing issue...
, an interim coalition government could possibly involve Popular Orthodox Rally
Popular Orthodox Rally
The Popular Orthodox Rally or The People's Orthodox Rally , often abbreviated to ΛΑ.Ο.Σ as a pun on the Greek word for people, is a Greek party. According to its political program LA.O.S...
. Democratic Alliance
Democratic Alliance
-Current political parties:* Democratic Alliance * Democratic Alliance * Democratic Alliance * Democratic Alliance * Democratic Alliance * Democratic Alliance for the Betterment and Progress of Hong Kong...
and/or the Democratic Left
Democratic Left
Democratic Left, Democratic Left Party, or Party of the Democratic Left may refer to:-Political parties:*Democratic Left *Democratic Left *Democratic Left *Democratic Left *Democratic Left...
. However, Democratic Alliance chairperson Dora Bakoyannis
Dora Bakoyannis
Dora Bakoyannis , born Theodora Mitsotaki , is a Greek politician. From 2006 to 2009 she was Minister of Foreign Affairs of Greece, the highest position ever held by a woman in the Cabinet of Greece; she was also Chairperson-in-Office of the Organization for Security and Co-operation in Europe in...
said that an interim government to pass the EU demanded austerity measures must include New Democracy to make the government viable. Bakoyiannis also added that "there is no point in us supporting Papandreou without Samaras, we don't have enough votes to make a difference anyway. We'll support a coalition and vote with them, without any demands of positions, if Papandreou and Samaras can work it out." Though Samaras continued to demand a new election in saying that was the only option for "stabilisation of the country, to restore its image, and to emerge sooner from this nightmare," he also added that an interim coalition government was a good idea in order to pass the bailout bill. Papandreou also said that: "My aim is to immediately create a government of co-operation. A lack of consensus would worry our European partners about our country's membership of the eurozone." He added that forming a coalition meant that he would "do whatever I can to help form a coalition government. The Oct. 26 decisions and obligations stemming from this are a condition for the country remaining in the euro." An anonymous member of PASOK suggested that Papandreou believed that Venizelos was the most appropriate person to head am interim coalition government as "Venizelos is the main negotiator in Europe, so there will be continuity, although New Democracy is fiercely against this proposal." Papandreou also hoped that a new government would be formed by 7 November, before eurozone finance ministers meet in Brussels to discuss the next scheduled bailout fund for Greece. However, according to PASOK, Papandreou would not resign until there was clarification on who would lead the coalition government and that he wanted a new government in the following week. LAOS also added that Samaras should reconsider his position as forming a coalition government has been "achieved with the departure of Papandreou from power."
Finance Minister Evangelos Venizelos added that an interim administration would serve until the end of February, after which a new election
Next Greek legislative election
Parliamentary elections were held in Greece on Sunday, September 16, 2007, to elect the 300 members of the Hellenic Parliament. The leading party for a second term was New Democracy under the leadership of Kostas Karamanlis with 41.83%, followed by George Papandreou and PASOK with 38.10%...
would be called following the passage of the 8-billion-euro loan tranche. Papandreou added that "elections at this moment not only equal disaster but could not take place in the best interest of the people. There is one solution. To support the [EU bailout] deal with a multiparty approach, without elections, with a strong government" and that he sought to "immediately create a government of co-operation [because] a lack of consensus would worry our European partners about our country's membership of the eurozone." An unnamed senior member of PASOK said that Papandreou would resign as soon as a new government is formed, possibly on the night of 6 November.http://english.aljazeera.net/news/europe/2011/11/201111613435173466.html
On 6 November, Papandreou and Samaras agreed to the formation of a new coalition government that would not be led by Papandreou following a meeting with Papoulias. Papoulias' office issues a statement that read the leader of the government would be decide by the leaders of the largest parties the following day, but it did no mention the tenure of the government. However, Papandreou said that "it is clear that this government will pass the baton but it will not pass it to a void - it will pass it to a new government, if we agree on it, and I hope this will happen soon. I'm not interested in being prime minister in the new government;" he also added that a new election should not be held before February or March until the bailout legislation is approved by parliament The announcement also followed an European Union deadline before a finance minister meeting on 7 November about the formation of a government and the enactment of a bailout agreement. Papoulias said that "an agreement was reached to form a new government to immediately lead the country to elections after ratifying the decisions taken by the European Council."
Lucas Papademos
Lucas Papademos
Lucas Papademos is a Greek economist who has been appointed as Prime Minister of Greece since 11 November 2011.Previously, he was Governor of the Bank of Greece from 1994 to 2002 and Vice President of the European Central Bank from 2002 to 2010...
was suggested as the possible leader of a new government.http://www.guardian.co.uk/world/2011/nov/07/lucas-papademos-frontrunner-greek-pm He later agreed to be the interim prime minister until a future election. At the last minute there was controversy over Papademos amongst both PASOK and New Democracy and a joint announcement for the new PM was put off till 10 November. Samaras blamed PASOK for the delay saying that the constitution
Constitution of Greece
The Constitution of Greece , was created by the Fifth Revisional Parliament of the Hellenes and entered into force in 1975. It has been revised three times since, most significantly in 1986, and also in 2001 and in 2008. The Constitutional history of Greece goes back to the Greek War of...
demanded that the ruling party had the prerogative to name a candidate for prime minister.
In what Al Jazeera called an "apparent farewell address" Papandreou said on television that: "We have agreed on someone who will unite us. I would like to wish every success to the new prime minister and of course the new government. I will stand by them and I will support them with all my strength."
International
Supranational: President of the European CommissionEuropean Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
José Manuel Barroso and President of the European Council
European Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...
Herman Van Rompuy
Herman Van Rompuy
Herman Achille Van Rompuy is the first long-term and full-time President of the European Council...
have issued a joint statement expressing their faith in the agreement of 27 October 2011 and that the country will honour the agreements it has made with the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
and the world. Joseph Daul
Joseph Daul
Joseph Daul is a French politician and Member of the European Parliament for the East of France. He is a member of the Union for a Popular Movement , a member-party of the European People's Party...
, chairman of the European People's Party in the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...
, characterised the move to hold a referendum as "verging on a violation of the Maastricht Treaty
Maastricht Treaty
The Maastricht Treaty was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty...
."
- G20: Though the 2011 G-20 Cannes summit2011 G-20 Cannes summitThe 2011 G-20 Cannes Summit is the sixth meeting of the G-20 heads of government in a series of on-going discussions about financial markets and the world economy....
was intended to discuss reforms to the global monetary system and to rein in financial speculation and capital flows, the surprising decision to hold the referendum caused a change to the discussions as the European Financial Stability FacilityEuropean Financial Stability FacilityThe European Financial Stability Facility is a special purpose vehicle financed by members of the eurozone to combat the European sovereign debt crisis. It was agreed by the 27 member states of the European Union on 9 May 2010, aiming at preserving financial stability in Europe by providing...
took precedence over other issues. - IMFInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
: Christine LagardeChristine LagardeChristine Madeleine Odette Lagarde is a French lawyer and the managing director of the International Monetary Fund since July 5, 2011...
, director of the International Monetary Fund, said that the next installment of the Greek bailout would be decided in December, after the referendum has taken place.
International: Central Bank Governor Mark Carney stressed the importance of Greece seeking democratic support for the proposed economic restructuring.: President
President of the French Republic
The President of the French Republic colloquially referred to in English as the President of France, is France's elected Head of State....
Nicolas Sarkozy
Nicolas Sarkozy
Nicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra. He assumed the office on 16 May 2007 after defeating the Socialist Party candidate Ségolène Royal 10 days earlier....
, said that he was 'appalled' by the move to bring the agreement to a referendum.: The Ministry of Finance described the move as an internal development and declined to make a statement.: Prime Minister
Prime minister of Italy
The Prime Minister of Italy is the head of government of the Italian Republic...
Silvio Berlusconi
Silvio Berlusconi
Silvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the...
said the decision to move to a referendum was surprising and having a negative impact on the markets.: The Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
George Osborne
George Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
said "The decision of the Greek prime minister
Prime Minister of Greece
The Prime Minister of Greece , officially the Prime Minister of the Hellenic Republic , is the head of government of the Hellenic Republic and the leader of the Greek cabinet. The current interim Prime Minister is Lucas Papademos, a former Vice President of the European Central Bank, following...
has added to the instability and uncertainty in the Eurozone.": White House Press Secretary
White House Press Secretary
The White House Press Secretary is a senior White House official whose primary responsibility is to act as spokesperson for the government administration....
Jay Carney
Jay Carney
James "Jay" Carney is an American journalist and President Barack Obama's second White House Press Secretary. Prior to his appointment as Press Secretary, replacing Robert Gibbs, he was director of communications to Vice President Joe Biden...
expressed the U.S. government's opinion that the move to put the bailout deal to a referendum shows that Europe needs to implement the agreement rapidly.