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Greece has been in financial trouble for years, and is widely regarded as the most troubled state in the euro zone. World leaders and financiers have labored for months in an effort to put together a bailout package that would prevent Greece's default on its financial obligations. It is natural to assume that the Greek Prime Minister, George Papandreou, would express gratitude after last weekend's announcement that such a plan had finally been forged.

ATHENS, GREECE (Catholic Online) - Following all that, Papandreou instead announced that he would put the carefully crafted debt deal to a referendum vote, an announcement that came as a tremendous shock to the world. Those responsible for crafting the deal are among the most upset.

European leaders reacted to Papandreou's Monday announcement on Wednesday by saying that all aid to Greece would come to an immediate stop until that country agreed to meet its obligations to the euro zone.

At stake in the referendum, is whether or not Greece will remain in the euro zone. The Greek Prime Minister believes the answer will be yes, and has planned a referendum as a show of support for the euro zone and evidence that Greece is committed to honoring its obligations.

However, as with any referendum, there is a risk that the vote could go the other way.

European leaders, notably German Chancellor Angela Merkel, and French President Nicolas Sarkozy, acknowledged publicly that there was an uncomfortable possibility that Greece could exit the euro zone.

European leaders have been informed that the referendum vote is likely to occur on December 4 or 5.

Sarkozy also announced that the bailout loans previously approved for Greece would not be paid until after the referendum. He told reporters on Wednesday, "we want to continue with the Greeks but there are rules and it's unacceptable that these rules are not followed."

Papandreou himself might not survive in office long enough to see the outcome of his referendum vote. Members of the Greek Parliament upset over the announcement have already scheduled a confidence vote for this Friday. Some of Papandreou's own party members have said they would vote against the prime minister and the current government. If that happens, it will only add to the turmoil that continues to embroiled Europe and economic uncertainty.

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Europe halts aid to Greece over Papandreou stunt

Article brought to you by: Catholic Online (www.catholic.org)