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While a referendum does sound good in theory, as it gives Greek citizens the power to decide their country’s fate…a referendum at this stage of Greece’s negotiations with its creditors would most likely do more damage than good, leading to panic, bank runs and more “real” damage to an already broke and fragile Greek economy.
Reuters reports this from Greece’s interior minister…
“We are working towards an honorable compromise,” Nikos Voutsis told Mega TV. “An immediate recourse to a referendum or elections is not in our plans right now.”
EU paymaster Germany suggested on Monday that Greece might need a referendum to approve painful economic reforms on which its creditors are insisting.
Cash-strapped Athens has been locked in talks for months with its euro zone partners and the International Monetary Fund on a cash-for-reforms deal.