Uncertainty reigns over Europe

As admirable as George Papandreou’s commitment to democracy is, there is still something alarming about his announcement, last night, of a national referendum on Greece’s bailout. This is not just a risky political gambit, which could bolster or destroy his government depending on numerous variables, but it has all sorts of gruesome implications for the wider European economy. The Greek people may be entitled to say No to a rescue package that promises little but demands much — but what then? It is that uncertainty that has set the markets trembling this morning.

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And that’s assuming that Papandreou’s government even manages to make it to January, the proposed date for a referendum, alive. The Greek Prime Minister is submitting himself to a parliamentary confidence vote this Friday, and there is talk that the main opposition leader, Antonis Samaras, might