On Greek Democracy

My first reaction to George Papandreou’s call for a referendum in Greece on the EU “bailout” plan was “he’s lost it”. Waking up to the radio reports of chaos in the financial markets initially confirmed that view. But 24 hours later I’m starting to see where he is coming from.

Greece might just about be the first western democracy to put the decision about whether deficit cutting austerity programmes are the best strategy to lift us out of recession to a vote. To give ordinary people a chance to say what they think of policies that seem to more about bailing out reckless banks – who have caused most of the problems we are now encountering – at the expense of their jobs and living standards, instead of policies to stimulate real demand, growth and economic confidence.

Actually, how refreshing is that?

It might even start a trend. Who should be dictating how we live and prosper? The already financially secure  - who seem too be leading so many western governmenst right now - and the money makers at the global financial institutions, or democratically elected governments with a mandate from their own people?

Of course, it might all just a be a high stakes bit of realpolitik to gain a few last minute concessions or railroad opponents in Greece behind the plan....................  Time will tell.