Reply #12: The burning fuse

[xchrom]

http://www.economist.com/blogs/charlemagne/2011/11/g20-and-euros-crisis

FOR MOST of the first day of the G20 summit in Cannes, the world’s most important leaders have been mere spectators to the political drama in Athens that could determine the fate of the euro zone, and of the world economy.

Forget the financial-transaction tax. Forget the regulation of commodity prices. Forget the call to ensure that the world’s poorest do not suffer twice, once because of their wretchedness and twice because rich-world aid budgets are cut. These things and more will be mentioned in the final communiqué. The most burning issue is the fate of the euro.

Just days after European leaders unveiled their latest "comprehensive solution" to the euro's woes, the Greek prime minister, George Papandreou, threw everything back into chaos by announcing this week that he would hold a referendum to approve the deal. As one senior source put it: "You don't call a referendum on austerity and expect people to vote for cuts."

Depending on the bewildering politics of Greece, the plebiscite may or may not take place. Mr Papandreou faces a vote of confidence tonight (November 4th) that he may well lose.