Greek referendum ruins bailout plans

  • 12 years ago In the run-up to the European Debt crisis, Greece racked up plenty of debt as a member of the Euro. When it became clear that Greece was in big trouble, other Euro countries had to help or risk contagion. Angela Merkel of Germany forced bondholders to take a 50% haircut while Sarkozy of France went to China for some relief. Merkel was praised for her leadership in cobbling together a bailout for the Greeks but in a twist that put global markets in turmoil, Greek PM Papandreou announced a referendum to decide whether or not to take the deal. Merkel and Sarkozy are sure to put pressure on Papandreou to take the deal immediately. If not, Greece might find itself out of the Euro.