Politics Thwarting Possible Gains in the Euro Zone
Events in Greece during the past two days may have spoiled the efforts of EU leaders who have been working very hard to resolve the crisis that has put most parts of Europe on the brink of economic collapse.
The first day of the G20 Summit in Cannes was overshadowed by declaration from some EU heads of government that the actions of Prime Minister George Papandreou may lead to the possible departure of Greece from the Euro zone to ensure the continued existence of the Euro currency.
Although Papandreou has scrapped his earlier plan to call for a referendum on the European Financial Stability Facility, the die has been cast and observers as well as its European neighbors think that not all is well in the crisis-hit nation.
The Greek government may not be out of the woods as parliament will still cast a crucial vote on Friday and even members of his own party are reportedly displeased with how the Papandreou has been playing with politics.
It was reported in the UK Guardian that Papandreou hinted the creation of a unity government was already underway to bail the country out of ignominy and debacle.
A seemingly welcome development was the pronouncement made by Greek opposition leader, Antonis Samaras of the New Democracy party, who strongly opposed the rescue plan before, that he is now supporting its enactment in the legislature.
The news was greeted with approval by German chancellor Angela Merkel and French president Nicolas Sarkozy.
The two have criticized the lack of political accord in Greece as the major reason for the failure of passage of urgent reforms.
In the numbers game, the ruling Socialist party maintains a slight advantage in the 300-member parliament.
Papandreou has allegedly made in known that he was willing to step down from power and his only concern at the moment was the welfare of his country by obtaining the next crucial installment of the relief package, the Business Spectator mentioned.
For EU leaders, the priority was to secure the currency since its downfall could lead to the collapse of the entire continent.
The G20 is expected to bolster confidence both by enhancing the IMF's finances and by formulating a strategy for global growth that will include urging "Germany, China and Japan to expand their domestic economies and a commitment by Italy to deal with public finances."