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Updated 18.22
GLOBAL FINANCIAL markets have fallen following the Greek prime minister’s unexpected announcement last night that the country would hold a referendum on its second bailout deal.
Minister of State for European Affairs Lucinda Creighton told TheJournal.ie that the move ‘makes life much more difficult for Ireland – we depend on the eurozone being stable, we depend on the issue of Greek debt being managed, and this has created chaos on the European markets today’.
Creighton said that the announcement ‘called into question’ the deal which was agreed just days ago on the Greek debt crisis.
Earlier, Creighton told Reuters that she expected a lot of annoyance among other EU politicians in reaction to the Greek decision, and compared the announcement to a “grenade” thrown just days after the deal.
Nicolas Sarkozy and Angela Merkel are to discuss the Greek news today. Swedish Foreign Minister Carl Bildt tweeted earlier: “I truly fail to understand what Greece intends to have a referendum about. Are there any real options?”
Meanwhile, Greek opposition politicians likened the referendum to blackmail against Greek citizens.
Stocks down
Stocks opened sharply lower in the US this morning on foot of the news from Greece, while Asian markets dropped one to two per cent overnight.
The FTSE 100 fell 2.9 per cent earlier today, while Germany’s DAX dropped 4.9 per cent and the French CAC-40 was down 4.7 per cent. Greek and Italian shares are down over 6 per cent, while the ISEX has fallen by 3.4 per cent.
Last week’s EU summit agreement on the second bailout deal for Greece had initially bolstered the markets, but that temporary shine has seriously worn off, with investors showing today that they do not have confidence that Greek Prime Minister Papandreou can pull off a successful referendum on the hugely unpopular Greek bailout.
Papandreou’s party has just a two-seat majority in the parliament after one member resigned from the party today. The government faces a confidence motion at the end of this week, and it is unclear if it will pass.
- Additional reporting by the AP and Christine Bohan
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This is brilliant move on greek pm behalf whatever his motive. Talk about being inspired! Watch the eu suits shaking in their boots and remember keep laughing when they start the scaremongering. Laugh louder when lucinda creighton threatens us with death as she did on news last week. The fairy story called capitalism, a la brothers Grimm, is coming to an end. About time too.
all true, also watch how your pension, savings, life insurance, car insurance, commodoties etc etc are affected by it,, unless of course you are totally self sufficient and insulated from all this
I’m sick of being scared Martin. And I’m sick of government terror. If it comes down to it I’ll grow spuds in my back garden. One thing I know is that decisions made in fear are always wrong. Feel the fear and tell them to FECK off I say.
I’m really tired of “the markets”
Another fairy story. What a laugh.
The markets are always uncertain or lacking confidence over one thing or another so why doesn’t someone come up with a system where we’re not all beholden to the whims of this mystical entity? If the markets were a person you’d slap them in the face and tell them to pull themselves together! Maybe get them a self help book on building their self esteem and self confidence!
What happens when they reject it? There’s no alternatives!
It’s a bit late for yer referendum georgi boy!!
Markets were in bother yesterday morning, hours before Greek referendum announcement; following Chinese reports on Sunday that it will not be bailing out EU and collapse of MF Global.
Euro fudge began unravelling almost as soon as it saw daylight.
http://mobile.reuters.com/article/idUSTRE79R1LG20111030?irpc=932
Can some european politicians please grow some BALLS and ask the Greeks to leave before they are tossed out.
Or will it cost our German and French brothers/sisters too much mulla.
The markets, the markets, the markets, the markets…….who are the markets? Cause it sure well ain’t you or me! What ever happened to democracy being a good thing? Now the markets don’t even like democracy it seems!
this is the first Greek referendum since early 70′s….
have your say