http://www.bbc.co.uk/news/business-15581728

Yeah, it looks like the referendum is dead so my OQ will probably never be answered.
Check out this video, either the translator is really bad or this guy is a worse public speaker than Rick Perry. I honestly have no idea what he is talking about, sounds like office gossip.

As to the first quoted point, the cost of either option is probably up for debate. I know the popular phrase is what you say, a little pain for Greece now or a lot later, well, I do know a lot of the people saying it have a vested interest in one choice and may not be all that objective.

As to the second point, that really depends on how the country is governed, a referendum may actually be the legal and best choice. Just because people don't always make "the best" choice isn't all that much of a knock on it. Most of our leaders in our capitalistic countries make decisions that fuck us badly in the interests of a small minority. In fact, deferring to these fuckers is how we find ourselves in this mess in the first place.

There are theories about the optimal size of a single currency area. I don't know them really well but having a single currency surely has benefits, only if the area becomes very inhomogeneous, then the difficulties begin to start. Having a political union and high mobility of workers is somehow very important to make it work.

There is an alternative to devalueing its currency with the same effect, that is drop in payrolls. Only it is probably very difficult since wages are very sticky.

Also controversial in this crisis is the best way out. While it's clear that the debt has to be reduced all over Europe in the long run, in the short run austerity can severly hurt/kill the economy. You have to be careful here. The real bad thing are the high number of unemploied people in southern Europe. I wish we had politicians who would focus on avoiding large unemployment all over Europe in the short term and reducing debt foremost in the medium to long run.

It's only scary because when it comes to wealth, people's sensibilities go out the window and their inner monkey emerges.

- Nobody wants to pay their taxes, especially not the rich.

- Politicians tend to hide the books so that the voters never get to make a real cost/benefit analysis based on how much different policies or projects cost.

- The majority of our production falls in 2 almost equally unsavory categories:

a) Bloated state corporations that don't answer to anybody and hemorrhage funds.

b) Nutcase private corporations whose sole consideration is to maximize profits even if they screw everybody (employees, clients, locality where they are based), but themselves in the process.

It works in larger countries. You just have to decentralize power and defer most issues to a more local level.

Politicians at the federal level are often loathe to do that, despite glaring differences between regions.

So your implementation got corrupted.

Instead of tossing the overall idea, perhaps you should just go back to the drawing boards and make it work.

Since the Greek people don't seem to know themselves what they want (ie. most Greeks oppose the demands by other EU countries before they get more money from them, but at the same time they don't want to leave Euro), I deemed it only good that the buck would have been passed to the Greek people, including the demonstrators. Ok then, you (=the Greeks) tell us (=Papandreou) what Greece should do? You decide, and live with your decision.

I'm pretty sure Papa was confident people would have to accept the demands and cuts if they were given the responsibility, after which Papa could say to demonstrators "you have no case, the Greeks have voted yes".

I am much more appalled by e.g. Greek opposition, to whom this debacle is just a way to supersede Papa and get into power. The opposition has already "promised" the Greeks that if they were elected ASAP, they would surely negotiate a much better deal from the other EU countries and creditors. OH RLY???

You ain't seen nothing yet. Wait until Italian and Spainish bonds start to crash, then complete chaos. These economies are each 5 times bigger than Greece. The EU will not have the money to save them.

(Not to mention when US collapses...) Yeah, too bad for all of us (including UK and US banks). But maybe the cleansing fire will be needed, as so many countries don't seem to know how to take care of their economy. Better to let them burn than trying to "save" the corrupt and inefficient countries, otherwise things will just stay the same and we will face the same problems over and over and over again. See how much US learned, or rather didn't learn, from the 2008 crash.

Never spend money that you have not earned. -Thomas Jefferson

This is my guiding principle in life. I live in a very old house and drive a very old car, but they are paid for in full. I avoid DEBT like the plague.

That's about the best answer I think I'm going to get. I had a feeling it was something to do with getting a mandate but it does seem like a huge gamble, after all people might just vote against in protest like in Ireland during the last treaty voting, and then his government would effectively collapse. But since his party has/had a fair majority it seems like there was already a mandate for them to lead. It just seems like there is everything to lose and little to gain with that explanation but on a scale of Nelson Mandela to George Bush (most intellectual to least) I would put Papy closer to Bush.

Good idea, sounds somewhat like me. I do spend lots of money, but usually only after I've earned them. Ok, I buy GoG games with credit cards because it is the easiest way, but only when I know I can pay it back ASAP. I bought a cheap reliable car, and when I got a housing loan for my small apartment long time ago, the bank clerk was joking she doesn't remember anyone getting so small housing loan that I was applying for.

So I've played it quite safe, but maybe that is also why I've never become a millionaire either. I don't have any stocks anymore either, sold them away long before the 2008 crisis (which in retrospect was a good decision). Then again, I haven't really saved money, so I don't own that much either (apart most of my apartment and car, and of course a vast collection of old (mostly PC) games!).

I am a Hellene and when I heard about the referendum I was overjoyed because I knew that, had it not been canceled, it would have led to Hellas leaving the European Union and, thus, taking a significant step in regaining our national sovereignty. After all, more and more Hellenes are steadily waking up and realizing that Europe is not only incompatible with Hellas but also antithetical.

The political establishment believed that by allowing a referendum on the matter that it would allow unpopular measures to be accepted by lifting the responsibility off its own shoulders and onto the people's shoulders. I've also heard that the referendum existed as a mere political tool to force opposition parties to agree to the EU's terms (since it was promised that the referendum would be called off if the opposition agreed) and therefore was, from the beginning, meant to be cancelled.

In any case, the whole debacle illustrates the fact that Hellenes have no say in matters concerning their nation and that the pro-Western political establishment is really nothing more than a pro-Western occupation lead by pro-Western puppet leaders who genuflect at the feet of their European masters.

Leaving European Union is the best option at the moment. Every poorer country has problems after joining EU. Portugal, Spain, Greece, Slovakia, Slovenia, Poland, all of them endangered of bankruptcy (more or less)

EU is going to fall apart, for sure.

btw. I'm astonished and amazed that over 50% of UK residents wants UK to step out from EU. Congratulations :) (really, I think in Poland there's no that many clever people)

You know that move like this would be hard and killer for economy? As much as i hate EU and the new super liberal state idea there is alot of good stuff done thanks to it.

I may be not objective since they paid for my research in China.

Such union, where poorer countries, like Slovenia, have to pay money to save Greece should never exist.

This is why I'm strongly for EU falling apart. The union is weak, either rich and poor countries "suffer" from being there. This is how I see this.

Switzerland and Norway on the other hand, are doing just fine outside EU. (i'm gonna move to Switzerland eventually. Great country)

the Fuck?

Slovenia is not poor. not rich either but better off (and always had been) than Poland.