Referendum on changes in conditions

Merkel and Sarkozy revealed their cards: they want a Europe without deficits and a Union without burdens. They want a new treaty, with automatic penalties for naughty countries.

Lucas Papademos and Evangelos Venizelos studied the statements by the leaders of Germany and France, read the telegrams from our embassies in Berlin and Paris and drew up Athens’ course of action. In two days in Brussels, the PM and the finance minister will ask for "decisions that will effectively erect protective walls for all countries" and the full implementation of the decisions of October 26.

"We must fully implement the decisions of October and achieve 100% private sector participation in the PSI. This is the only way to reduce the debt by 100 billion, by 47% of the GDP. If we do not achieve this, we will have a funding gap and a vacuum in the sustainability of our public debt," Venizelos warned.

The cause was the information that bank capital is moving strongly towards the cancellation of the agreement.

Moreover, the Greek government says no to:

•     a two-speed Eurozone
•     the overthrow of the institutional parity of member states
•     the perpetuation of inequalities within the Eurozone

Thus, it will insist on the issuing of Eurobonds and the need to enhance liquidity with whatever this means for the role of the ECB and the possibility of cutting funds. Greece is ready to take on the commitment for budget surpluses in exchange for the haircut. Regarding its legal form, instead of the constitutional provision, the process of ratifying the new treaty by the parliament seems now like a more favorable solution. In order to satisfy lenders and give a chance to the people to express themselves, one should not exclude the possibility of a referendum so that parties and voters together might undertake the responsibility or reject it.