THE DAILY TELEGRAPH: Greece last night faced the threat of bankruptcy within weeks after the EU said it would not provide any more funding to the beleaguered country unless it agreed to support the euro bail-out.
The Greek government is expected to be unable to pay wages for state workers and pensions next month without a planned injection of £8billion of EU cash.
George Papandreou, the Greek prime minister, met his French and German counterparts ahead of today's G20 summit of world leaders.
Mr Papandreou has called a referendum on whether the Greek public supports the bail–out. The decision has plunged the rescue into turmoil.
After more than two hours of tense talks in Cannes, Mr Papandreou announced that the referendum would probably be held on Dec 4. He said: "This is a question of whether we want to remain in the eurozone; that's very clear."
He added: "I believe this will be a positive outcome. I believe the Greek people want us to stay in the eurozone."
Nicolas Sarkozy, the French president and Angela Merkel, the German Chancellor, said no funds from either Europe or the International Monetary Fund (IMF) would be made available until Greece had accepted the austerity programme. Continue reading and comment » | Robert Winnett, and Bruno Waterfield | Thursday, November 03, 2011
My comment:
The Prime Minister will travel today to the G20 summit but is expected to be little more than a bystander as key meetings take place between European and American leaders.
How humiliating for a British PM! Had we played a positive rôle in the EU, and had we bought influence, I dare say this wouldn't happen like this.
The British government has refused to contribute money to help the euro but European leaders are expected to lobby the Chinese, Russians and Brazilians for loans.
So, with our stinginess – we can find money for all manner of other things – we are allowing the Chinese, Russians and Brazilians to eclipse our standing in Europe. This is truly a disgrace. How embarrassing for all right-thinking Brits. But how sad, too! – © Mark
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