Greek euro coin

It is less than a week since a difficult rescue plan for the euro was hammered out in Brussels. And now Greece has thrown a spanner in the works. The Greek Prime Minister, George Papandreou, has announced that he will hold a referendum on the deal.

Is this a reckless risk on the part of Papandreou, designed just to save his own skin, or a fine example of democracy at work? It was the Greeks, after all, who invented democracy. Inside Greece, it may look like the people get to decide. But from a eurozone perspective it is probably not the will of the people.

The main opposition leader in Greece, Antonis Samaras, said, "Mr Papandreou, in his effort to save himself, set a divisive dilemma, an extortionate dilemma, that puts in danger our future and our position in Europe." It is indeed a dilemma – another Greek word!