Now the Greeks scrap their euro referendum

The under fire Greek Prime Minster George Papandreou sensationally performed a u-turn yesterday by cancelling his controversial idea of a referendum into whether the Greece should accept the latest bailout package. Now the Greeks scrap their euro referendumThis has left the Greek government on the brink of collapse as infighting has led to the PM losing his majority.

The political skirmishes spread to the latest G20 summit in Cannes where numerous politicians have balked at the idea of putting up more cash to support the ailing Eurozone economies through the IMF.

The main discussion of the summit is whether to double the size of the International Monetary Fund.

Prime Minster David Cameron has maintained his view that it was in Britain’s economic interest to offer to underwrite billions of pounds in IMF loans.

Even if Greece can avoid default through its current bailout and the support of a beefed-up IMF, world leaders have for the first time spoken about the possibility of Greece exiting the Euro.

French President Nicolas Sarkozy said it was up to the Greek people to decide their future- through his clenched teeth.

The other big announcement yesterday came in the shape of the latest ECB rate decision.

New President Mario Draghi surprised the markets by cutting the base rate from 1.5% to 1.25% in a bold move looking to increase growth across Europe.

In the subsequent press conference, the new president discussed inflation in the Eurozone stating that it is currently over 3%, but will fall below the target level of 2% in 2012.

At least one more cut is predicted over the months ahead as the ECB continues to battle a rapidly worsening economic outlook.

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