So, Greece’s Prime Minister has announced that the country will hold a referendum in relation to the next, yes the next, bailout which it is set to receive and depends on the implementation of austerity measures.

Of all the nerve, the barefaced cheek and outright devilish cunning. In the run-up to the monster summit last Wednesday, George Papandreou gave an impassioned speech, appealing to all members of the European Union. In that speech, he emphasised that the economic crises which are gripping Europe show that the problem is not Greece, but Europe itself. He appealed for the set-up of the €3bn firewall, to protect Europe and to ensure that others do not get bogged down, making indiscreet, but clear reference to Italy and Spain.

It seemed to work. Yet, the Greek PM, in doing so, obtained, what in Brussels is called a sweetener. Once attention shifted to this, the EU gave the go-ahead for Greece to get its next multi-billion slice of aid. In addition, private banks agreed to write off about 50% of the country’s debt – and we must always remember that this government cooked books and fudged figures, even to get into the eurozone. They pleaded for European solidarity, yet as soon as the deal is agreed, they throw everything into absolute turmoil. In fact, the news of the referendum has actually cast doubt on whether the aid deal can now go through.

The markets reacted in sheer panic, with the FTSE 100 in London trading 2.1% lower, the Dax in Frankfurt 3.3% lower and the Cac-40 in Paris 3.1% lower in morning trading. The Nikkei in Tokyo closed down 1.7% and the Hang Seng in Hong Kong closed down 2.5%. Meanwhile, opinion polls in Greece suggest that most people (about 60%) do not support the austerity deal. Mr Papandreou says he has utmost faith in the Greek people to “do the right thing”. Well one would have to say that it’s a bit rich, coming from a politician that has just “done the wrong thing”. In addition, the Greeks have a highly irresponsible opposition which is promising the earth to voters. One can see exactly where this is heading. We had seen the same happen in Malta in the actual referendum on EU membership; although the electorate favoured membership, the opposition still got a high percentage of the vote. Though, this did not touch anyone’s pocket. In other words, with austerity and a populist opposition, this referendum has not got a cat in hell’s chance of being approved.

Now, some analysts are saying that the only way forward is to allow the Greek state to become insolvent and in the meantime, try and contain the fallout which will hit European banks.

Well, well. This certainly has come full circle hasn’t it. In all likelihood, we are back to square one, and reconsidering whether to allow Greece to fail. If that happens, one would not like to even begin to imagine what will happen. This decision to hold a referendum is highly irresponsible and highly dangerous. It is also just not the right thing to do, morally, ethically and it is also most un-European. Many countries have made great sacrifices, Malta included, to give Greece and the euro another chance. Just look how our faith has been repaid.