'Comply or get out' - The Best from Greece

Franco-German determination to preserve the euro at all costs, including the expulsion of Greece if necessary, was the resounding message of Angela Merkel and Nicolas Sarkozy after tense talks with George Papandreou in Cannes.


 

In an ultimatum to Athens, the two leaders said that a new eight billion euro loan tranche will not be disbursed until Greece accepts the October 27 agreement in its entirety.

 

The unprecedented public humiliation was underlined by the fact that it was Merkel who publicly set the terms of the Greek referendum – declaring that “it will be above all on the question: “Does it want to remain in the euro – yes or no?”

 

Merkel said that she had no prior knowledge of the referendum plan, and that Papandreou had not discussed it

“It was a difficult, tough discussion,” she said of the talks with Papandreou.

 

Sarkozy delared that Greece must follow the bailout plan religiously, and that the Greek parliamentary vote on the plan must precede a referendum. By law, the plebiscite cannot involve the bailout memorandum itself, but a broader question on Greece staying in the eurozone.

 

“We believe the Greek people are free and responsible for their choice,” he said. “We all want to continue the effort with Greece. But there are rules,” Sarkozy said, adopting the tone of an adult chastising a child.

 

Asked about back-breaking austerity in Greece and the alienation of EU citizens from decision-making, Sarkozy said if the French and Germans didn’t take initiatives, people would have asked what the EU’s most powerful states are doing as bystanders.

 

The leaders stressed that they will give “the proper response for the euro”, regardless of the outcome of the Greek referendum.

 

Papandreou said the referendum may be set for December 4.

 

The degrading ultimatum handed over from Merkel and Sarkozy to Greece fueled the existing anger against Papandreou, with many MPs demanding that he step down.

 

Over three dozen MPs are expressing concern over the referendum.

 

Merkel underlined that Papandreou’s referendum stirred doubts over implementation of the EU deal. 

 

Papandreou maintained that a positive outcome in a referendum “is good not only for Greece, but good for Europe.

 

“I have never seen as much determination and decisiveness to achieve coordination,” said IMF chief Christine Lagarde.