Greek referendum - Respect the grenade of democracy

TO SAY that Greece lobbed a hand grenade into the heart of the teetering eurozone would be a gross understatement — by announcing a referendum on the €130 billion EU bailout deal, the Greek Prime Minister, George Papandreou, has dropped a bombshell on Brussels.

Not surprisingly, he was roundly criticised as shares dived yet again on global stock markets, triggering emergency meetings today. But the irony is that he will be seen by many as striking a blow for democracy.

No doubt, when giving the people of Greece the right to have their say on an issue which will dictate the future quality of their lives for years to come, his political reputation and place in history were uppermost in his own mind. For a politician that likes to see himself as a champion of democracy, the referendum offered a convenient way out. As the Irish Government has just discovered to its embarrassment, referendums can be unpredictable and dangerous. For Europe, however, the problem is that the outcome of this proposed referendum seems entirely predictable.