Papandreu brīdina par bīstamām sekām

Posted on June 19, 2011

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Papandreou’s latest attempt to buy his failed regime some time, after last week reneging on his promise to step down (which certainly did not buy him any friends), was a speech to Parliament in which he told Greece the obvious “We had three choices.First, bankruptcy, second, leaving the euro, the third, helping the support mechanism that we created…The consequences of a violent bankruptcy or exit from the euro would be immediately catastrophic for households, the banks, and the country’s credibility.” Nothing new there: the same Mutually Assured Destruction rant that Americans have grown to love so much over the past 3 years. More importantly the Papster called for a referendum on constitutional reform in the fall, naturally without any actual details or specifics. The speech launched the 3 day parliamentary debate on the vote of confidence in the government which is due on Tuesday at around 5pm EDT. In addition, G-Pap also called for a consensus at national level, something which will be very difficult to achieve with ongoing MP defections from the ruling PASOK. The PM noted that the Greek problems can not be solved by banishing the International Monetary Fund and the Troika. Paradoxically the truth is precisely the opposite: the Greek problem stem from the Troika’s involvement, and as long as they are there, Greece will merely get more and more encumbered with emergency loans until very soon 100% of government revenue goes to pay off western banks. But when it the last time a member of a ruling party actually told his electorate the truth?

More from Kathimerini:

“I asked the renewal of confidence in the government because the country is in a critical condition. I also seek national unity on the basis of certain assumptions: debt and deficits are a national problem and raise a question of guardianship. This dependence which certainly protects us from bankruptcy, “said Mr Papandreou and continued:

“Let’s understand that the future path of out nation is our responsibility. I want to ask for the Vote of Confidence not in order to find a scapegoat [as in G-Pap] but in order to undertake action and so that Greece is not dependant on Lending Powers.

Among other things, the prime minister said the three options in the country to escape from the economic crisis.

“We had three choices. First, bankruptcy, second, leaving the euro, the third, helping the support mechanism that we created. “

“The real problem the country is the unequal distribution of burdens in society. And we need a national agreement to change, “commented elsewhere while he also reported the creation of a new constitution, and in conducting a referendum autumn.

Needless to say there will be no referendum. Greece, and certainly its government, will be nowhere in the same format come this fall, as they are currently.

Prepare for some serious FX volatility in the next 72 hours (which will only get exponentially worse if indeed hedge funds suddenly realize they are prohibited from trading FX).

Full G-Pap speech, in which he asks for a vote of confidence 17:55 in:


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