Greece Rescue Plan in Jeopardy Amid Referendum

Ellen Braitman discusses potential consequences of Greece's vote on debt deal.
3:33 | 11/01/11

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for Greece Rescue Plan in Jeopardy Amid Referendum
Less a week ago markets were soaring on news of the deal in the Euro debt crisis but now reality is setting -- and some new challenges joining me now to discuss all of this -- Bloomberg TV's -- -- and Allan thanks much for joining us -- first of all the Greek Prime Minister has decided to hold a referendum. On the deal reached last week is just effectively mean that the Greek people have a chance to veto this whole deal. It really doesn't it took a lot of folks by surprise pop -- coming out yesterday. And saying that it's democracy at work the people have an opportunity to speak and the question is is it going to pass or not because recent -- -- that there's been a lot of opposition to the deal that was struck last week what was struck. It was to expand the European bailout fund also. To force -- -- to take a 50%. Launched on their Greek bonds so. According to what we're hearing a lot of discontent out there and a lot of surprise that we're seeing to this decision that he announced. A division with -- -- government itself because two lawmakers have come out against holding a referendum the prime minister is under fire this from some in his. You know in his own legislature. What does the future look like right now. Yeah and six members of the party called on him to resign in a joint -- so. He's all ready really hanging on by a threat when it comes at a very small majority of seats that he does have. Control over there in the government so. You know this is really seems to be a political crisis as well as an economic crisis -- happening at this time and obviously markets around the world are reacting negatively. To this news expect this to be prolonged instability in the market -- -- -- Europe is that it's driving us for months and that again along with -- the global economy in terms of how much it slowly and of course it does come to this Greek questions that we have. Surged and fallen. Based on what's happening there on in terms of these European developments -- Honeywell makes -- in the stock market today were also seeing it. Very heavily reflected when it comes to the bond market as well so for example just a little while ago this morning. You had Greece have to pay a record 84 point 65%. Interest rate on a two year bond by -- here in the US where. Less than a quarter of 1% -- You're talking here about investors -- pricing -- the -- that they think even despite the -- on expanded. That Greece could default on its not gonna survive and -- current state that's stacked pretty much is at its current plan stall. Is there a plan BE at this point. There's not because what is still happening is the terms from last week being ironed out that the referendum in -- is not supposed to happen. Until we have more details out of what this fund is when it looked like that we have now at this point. There's a note -- from the credit rating agency fits this morning. And they're talking about you know that. Threatening here Europe's stability. We had this -- random because again against the fact that you're talking about everything being fragile even before this -- so. Answer that question but I think. At answering -- great aunt and -- -- with some answers on debt crisis in Greece thanks Alan. Thanks.

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"3:33","description":"Ellen Braitman discusses potential consequences of Greece's vote on debt deal.","mediaType":"default","section":"ABCNews/Business","id":"14858190","title":"Greece Rescue Plan in Jeopardy Amid Referendum ","url":"/Business/video/greece-rescue-plan-jeopardy-amid-referendum-14858190"}