Markets Fall After Surprise Referendum Is Set by Greece

Financial News Network
November 03, 2011 AT 7:15 AM
European markets fell dramatically on Tuesday after Greece's Prime Minister George A. Papandareou stunned the continent's leaders with a shocking announcement late Monday that his government would hold a referendum on a new aid package for Greece, reported The New York Times.The proposed ballot measure would put Greek austerity measures--and potentially membership in the euro zone--to a popular vote for the first time, risking Papandreou's political future and threatening even greater turmoil both among the countries that share the single currency and further field.His announcement shook through Europe's swinging markets on Tuesday, with bank stocks taking a particular beating because of their exposure to Greek debt.