A Greek drama

Economist
November 1, 2011

Greece is not only the cradle of democracy, but of drama. The latter in particular was in rich supply after George Papandreou, the country’s prime minister, hastily announced a plan for a referendum on the new bail-out package that had been approved at last week’s European Union (EU) summit. First Mr Papandreou had to confront a hostile cabinet (although it has since endorsed the idea of a referendum). Then he faced the threat of a rebellion by his Panhellenic Socialist Movement (Pasok). And on November 2nd he will miss the opening session of a three-day confidence debate in parliament: Angela Merkel, Germany’s chancellor, and Nicolas Sarkozy, France’s president, have summoned Mr Papandreou to emergency talks in Cannes. They will try to dissuade him from what one western European observer called “political suicide and financial ruin for Greece”.

Pasok lawmakers erupted in fury at the idea of a referendum, which may be held as early as December, but could not happen at all if the Greek government loses the vote of confidence. Two socialist backbenchers said they would henceforth sit as independents, reducing the party’s parliamentary majority to a bare minimum of 151 seats in the 300-member chamber. A third socialist deputy, former development minister Vasso Papandreou (no relation), said she had asked Greek’s president Carolos Papoulias to call a meeting to organise a government of national unity. It would push through fiscal and structural reforms, then take the country to elections. “Greece faces imminent bankruptcy,” Ms Papandreou warned. Separately, six veteran Pasok members urged the prime minister to resign, saying he was “taking Greece back to the 1950s”—a grim period in the country’s history, which was marked by widespread poverty and mass emigration.

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