Europe's days-old plan to solve its crippling debt crisis has been thrown into turmoil by the Greek Prime Minister's shock decision to call a referendum on the country's latest rescue package. Stock markets plunged around the world Tuesday, particularly in Europe, with the Athens exchange sliding 5.5 percent, on worries the Greek government could lose the referendum vote. If that were to happen, Europe could face a devastating disorderly debt default and Greece could leave the common currency. Months of uncertainty over the vote will threaten the stability of larger economies like Italy, which saw its borrowing rates rise sharply. It will also hinder European leaders' efforts to get countries like China to contribute to their expanded bailout fund and to convince banks to accept bigger losses on their holdings of Greek debt. "While it may be the democratic thing to do ... what happen if Greece votes 'no', which is possible given how unpopular the bailout plan appears to be amongst G
Raymond Clough raymond.clough@gmail.com
CBS Ne - 11 minutes ago |
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