Katainen says that the decision could have damaging repercussions for European stability. He says that he has been in touch with leaders around Europe since the news came and that it has taken everyone by surprise.
Greek Prime Minister George Papandreou announced on Monday that he would leave the fate of the bailout in the hands of voters. EU leaders agreed on a rescue package for Greece only last week after difficult negotiations. Papandreou’s intention to hold a referendum has provoked worries that this will throw Europe back into crisis. According to the latest opinion polls, a majority of Greeks are opposed to the bailout and to the austerity measures that come with it.
Rehn confers with Venizelos
“I’m afraid of the worst—that this will cause instability in the eurozone and partially impede the positive developments that last Sunday’s eurozone-level decisions could have brought about,” Katainen says. “It is not a pleasant surprise. Uncertainty breeds more uncertainty, and these are uncertain times as it is.”
Katainen made his comments at the session of the Nordic Council in Copenhagen.
Greek Finance Minister Evangelos Venizelos, who was not informed about the referendum before Papandreou announced it, spoke by phone about the plans with Monetary Affairs Commissioner Olli Rehn and other EU leaders on Tuesday.
The announcement sent European and US stock markets tumbling by three to seven percent on Tuesday.
Urpilainen: Speedy reply needed
Finance Minister Jutta Urpilainen said she hoped for a quick reply from Athens as to whether it is committed to getting its economy into shape.
Both opposition parties in the Finnish Parliament said that the Greek referendum would be in effect a vote on whether the country should leave the euro.