Trader Talk

3 Main Issues in Greece, Germany, France Meeting

"Can I report my results in drachmas?" As Greece's Papandreou meets with France's Sarkozy and Germany's Merkel, the issues are:

1) will Papandreou survive a confidence vote on Friday? If not, elections are the likely path, and a referendum seems moot.

2) If he survives, when will the referendum occur? Will the EU really withhold any further money, as EU sources have indicated?

3) How will a referendum be worded? Will it ask if Greeks want to stay in the euro zone, or more narrowly worded to give just a thumbs-up or -down on the recent EU package?

I'm not sure there is much of a difference. A thumbs down on the EU package would effectively be seen as a "no" to theeuro zone. No more money would be forthcoming.


"Silvio, I think I found something in Article 96...What can we pass by decree? We gotta have something for Merkel..."

Reports that Italy's Berlusconi is considering "various legislative options, including decree" to fast track measures to improve the Italian economy's competitiveness has led everyone to scramble to read the Italian Constitution on what, if anything, can be passed with decrees.

Still not clear, but he may shoot up with a package that can be passed with a decree as a down-payment on an action plan.

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