As the G20 Summit in Cannes, France gets underway, officials placed Greece on top of their agenda after the Greek Prime Minister made a shock announcement on Thursday that he will be putting the bailout package to a referendum vote.
French President Nicolas Sarkozy said that the EU/IMF will not disburse the next 8 billion euro aid tranche to Greece until after the referendum. He added that if Greece breaks away from the euro zone following the referendum then the bailout package will be frozen. With no money, this will consequently lead Greece to bankruptcy.
Greece’s international lenders (comprised of the EU/ECB/IMF) has cut off financial aid to the debt stricken country until an early December vote determines whether it deserves a fresh batch of loans needed to stave off default.
“The referendum will revolve around nothing less than the question: does Greece want to stay in the euro, yes or no?” German Chancellor Angela Merkel told reporters after crisis talks hours before a Group of 20 summit set to begin today in Cannes, France. French President Nicolas Sarkozy said Prime Minister George Papandreou’s government won’t get a “single cent” of assistance if voters reject the plan.