Last week I wrote an article on the Greek Prime Minister, George Papandreous, and what I termed “political suicide”. For those who did not read that post or any financial news in the last week for that matter, I will fill you in. Basically George Papandreous decided to announce that he would put the European Bailout Package to a referendum. This decision came out of nowhere and certainly took European markets and leaders by surprise. Putting it to the people meant there was a strong chance it could be vote down and Greece forced to default.
As I mentioned in my original post I said there was no way French President Nicolas Sarkozy or German Chancellor Angela Merkel would let this pass. It also appeared that individuals within the Greek Parliament could also see the dangers of the strategy and were withdrawing their support for George Papandreous. Based on this information and the importance of Europe reaching some level of financial stability I said George Papandreous would be lucky to last a week.
That statement would prove to be correct because on Friday he faced a confidence vote in the Greek Parliament, which he won. This was however, a prearranged agreement. By allowing the confidence motion to pass there would be no need for fresh elections (which would further delay the European bailout) and George Papandreous could then step aside with some form of dignity. Following this move a new unity government will be formed and Greece ready to accept the European Bailout.
Unfortunately for George his approach was misguided and he has now paid the price with his job.
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