Greece Premier assures December ballot on debt crisis

With the fear of expulsion from the Eurozone looming large on Greece, Premier George Papandreou opts for early December vote. The referendrum is hoped to seal the deal for Greece’s chance to remain an Eurozone member. Though, in doing so, Greece will have to abide by severe austerity measures.

The assurance from George Papandreou came amidst veiled threat from European leaders, especially from France and Germany. The failure to get a clear mandate could mean Greece will cease to be a member of the Eurozone. Plus, it will stop receiving European aid. On the other hand, to remain an Eurozone member and in exchange of using the 12-year old currency, its banks will have to willingly absorb 50 percent loss in Greek bonds.

The threat is the outcome of Papandreou’s letter to Eurozone leaders on Monday. In the letter, Papandreou expressed his plan to hold an election on the second bail-out package details that was negotiated last week.

As of now, the European Union finance ministers are scheduled to meet next Monday to hasten the speed on decisions concerning the Eurozone relief package. But before this, Papandreou government is going to face confidence vote on Friday that will decide his own political career.