Dutch support for Greek bail-out at risk

The Greek premier’s proposal announced on the 1 November 2011 to hold a national referendum on the eurozone bail-out deal negotiated in Brussels the previous week threatened to come at the cost of losing a crucial donor – the Netherlands.

The Dutch Labour party said it would not support the accords if the Greeks insist on holding a referendum, calling the proposal a 'deal-breaker'.

Without Labour’s support, the Dutch government lacked the votes to push the Greek rescue deal through parliament.

The loss of support in the Netherlands was a sign that Europe’s efforts to slash Greek debt and save the euro were skirting the edge of a political cliff, and that the demand for a referendum could push them over the edge.

ESO: Background information: Greece calls referendum on EU bail-out / Greeks hostile as EU ‘task force’ starts work / EU leaders battle to save Greece deal http://www.europeansources.info/record/greece-calls-referendum-on-eu-bail-out-greeks-hostile-as-eu-task-force-starts-work-eu-leaders-battle-to-save-greece-deal/

ESO: Background information: Eurozone crisis rocks Dutch government http://www.europeansources.info/record/eurozone-crisis-rocks-dutch-government/

EUObserver, 2.11.11: Dutch support for eurozone rescue plan at risk http://euobserver.com/9/114141

RNW, 1.11.11: Dutch worried by Greek referendum http://www.rnw.nl/english/bulletin/dutch-worried-greek-referendum

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