Papandreou has flipped. Couldn't devise a better way to dynamite all the work done. Ask the markets to sit about until January and see if the Greek turkeys will vote for Christmas or ..
Nobody is happy with this situation and nobody wants to start from here but here is where we are and it was Papandreou's job to get the best deal he could.
The Greeks would be less happy if told that Lithuania or Ireland wanted to hold a referendum to see if their citizens approved of the latest deal in which 50% of Greek debt is wiped out. Maybe the Germans, who have voluntarily accpeted later retirement dates for example, are not so impressed with Greek demands for better pensions at a younger age.
Like it or not, huge risks were taken by leaders of many other countries to provide a deal for Greece and they have voters as well. Sometimes it is the job of leaders to do deals and if they cannot, then there is no point doing business at all. Fact is that it was always an option to just let Greece go bust, kick them out of the Euro and watch how they got along. Sure that also would hurt the Euro itself, the big lenders (which were Germany and other countries that did well out of the boom times). But in a dog eat dog world I wonder how Greece would have got along compared to them.
The idea that all decisions should be made by referendum might suit Californians (who don't seem to need books in schools anyway) but it is not, in fact, the way decisions can possibly be made in the face of the present financial crisis in Europe. Dream on!
Anyway, debate as you will there is no way this decision to go for a referendum will work politically or economically. Papandreou has blown the game for Greece.