Political crisis in Greek is bad news for Eurozone

The Greek Prime Minister is facing demands for his resignation after he called a referendum on EU aid package yesterday.  The latest development in Greece have led to  a widespread fall in share values across the world and risk the end of the agreements on saving the Euro.


The challenge to the Greek Prime Minister George Papandreou has already upset the world stock markets with falls of upto  3% this morning.

According to the leader of the Greek opposition Antonis Samaras said “He has posed a dilemma of blackmail that puts our future and our position in Europe in danger."

Mr Papandreous wants people involved in how the country tackles its debt crisis. But, the European stock markets have fallen, particularly bank shares.

The euro fell 1.5% against the US dollar today and 0.4% against the pound.
Last week EU Leaders approved a 100 bn-euro loan to Athens and a 50% debt write-off.

Greeks have doubts about the strict measures demanded by the  EU. Many protests took place around the country against pay cuts, tax rises and falling pensions.

A recent poll suggests that 60% of Greek citizens do not support  the EU proposal.  German Chancellor Angela Merkel and French President Nicolas Sarkozy are reportedly worried by the lack of confidence in the Greek government. A failure in Greece could have serious consequences for Italy and Spain.

 The  Greek Parliament  is due to debate a vote of confidence on Friday.