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16.59: A quick re-cap on how the Greek developments have unfolded.Last week, Europe’s leaders approve a new €130bn bail-out for Greece, which foresees a 50 per cent loss for holders of Greek debt, as well as other measures designed to stem the eurozone’s sovereign debt crisisThere is much rejoicing in the markets, despite warnings from the wise that the lack of details in the deal is ominousThen, on Monday, George Papandreou, Greece’s prime minister, drops a bombshell: he will offer Greeks a referendum on the new rescue packageThere is much anguish in marketsOn Wednesday, Angela Merkel and Nicolas Sarkozy summon Papandreou to Cannes on the eve of the G20 summit to hang him by the thumbs until he buckles for crisis talksMerkozy emerge to warn that Greece will receive no more bail-out cash until it decides what it wantsMeanwhile, it emerges that the plan is to hold a referendum not merely on the bail-out but on Greece’s very membership of the single currencyThursday dawns with news that Evangelos Venizelos, the Greek finance minister, is no fan of the referendum ideaZero hour in Athens as Papandreou, on the brink of resignation, summons his ministersThere is much confusion in the marketsAs the enormity of what might befall Greece should it not receive any more rescue cash and, perhaps, be flung from the euro, becomes clearer, the opposition conservatives reverse their opposition to the bail-outThis gives Papandreou the “consensus” he has been seeking, meaning he can drop the referendum plan. He does not resignPapandreou heads to parliament to address his MPs, where tomorrow he still faces a confidence vote
