The Greek referendum call is, while it lasts, effectively a plebiscite on euro membership.
I say “while it lasts” because the opposition is mobilising a parliamentary manoeuvre to bring down the government, which may succeed – returning Europe to its status quo of containable trauma.
If Greeks reject the 50% controlled default on debts they owe to the banking sector, then the arithmetic I revealed on Newsnight on the eve of the Euro summit comes into play – without a 50% haircut, and a further 130bn euro bailout, on top of 110bn, Greek debt spirals out of control and the country goes bust.
By Paul Mason, Economics Editor, Newsnight, BBC.
The rest of his article can be found here.