Greek Referendum? Who has the power in this negotiation? Its like if you owe a bank £1oo they have the power. If you owe a bank £350 billion you have the power as the bank will be in trouble if you don’t repay.
Despite all the posturing it it the French and German banks that hold Greek debt and they have probably insured it with credit default swaps – which could be syndicated through any worldwide institution. Which is as simple as a pack of cards – toxic contagion is where everything collapses and the governments become responsible.
The Greek government needs a mandate – hence a referendum or not – as perhaps it could be be a better negotiating position for them to default – or negotiate a better deal. The prime minister’s safety must be at risk as well as his stress levels and health. He can’t go sick like the Portugese CEO of our biggest nationalised bank Lloyds.