The recent Greek referendum on its newest bailout package has been cancelled. During an emergency meeting at the G20 summit in Cannes today, Greek Prime Minister George Papandreou was informed by irate European leaders that any referendum would be to decide on Greece leaving the eurozone, as the country struggles to remain part of the financial system that it now appears it was too small to support.
In the last two days, the rescue plan for Greece fell into disfavor after Papandreou said he would put the deal to a popular vote. He explained that the painful austerity measures demanded by creditors could only continue with the support of the Greek people, who are ultimately the ones suffering due to the decisions. French President Nicolas Sarkozy and German Chancellor Angela Merkel are extremely upset by that decision. It resulted in Papandreuo being summoned to the G20 summit and asked to explain the move.
But what lead Greece to this low place in its financial history, and how might the country work towards digging its way out while remaining in the good graces of creditors? Is it perhaps too late for that? If you are new to this crisis and you want a quick, four minute primer on its origins, check out the video below. To learn even more, check the news channels on direct tv.