As it turns out, Mr. Papandreou's seemingly democratic gesture was more likely a political tactic to lure the opposition conservatives into sharing the political burden of passing the bailout deal. Although many of these conservatives had likely supported the bailout package, they kept their distance due to its extreme unpopularity on the street.
With growth slowing and fiscal deficits widening, the EFSF isn’t big enough to stop the contagion. We think Europe’s outlook will deteriorate until a strong new source of confidence is introduced – though two powerful ones, ECB bond buying and U.S.-style blanket guarantees for new bank debt, aren’t on the table.
The centrist elements have often led the country to believe that limited government meant accepting half the social and economic agenda that more radical Democrats propose.