Eupdate Game-Changer: The Greek Referendum

The Greek authorities' decision to hold a referendum on the new Eurozone rescue package strikes me as the most interesting and potentially consequential development in the crisis in a very long time. It is potentially more consequential than last summer's breakthrough and last week's all-nighter.

I may be unduly influenced by the other European referendum experience--Iceland--where the people have now repeatedly rejected the government debt settlement deal, despite substantial improvement in the terms between the two referenda. But with the entire Greek package on the line and much to pick on, I find it hard to imagine a favorable vote. I also wonder about the implications of holding a vote when so much of the package is up in the air. One outcome of a negative vote might be to empower the government to go back and ask for more favorable terms. Even if the ultimate vote is affirmative, the interim  uncertainty must feeze all the Europrocess coming out of last week's summit. And if a better deal emerges after the first one is voted down, would that too be put to a referendum? Much to talk about in Cannes.