From the Washington Post:
Prime Minister George Papandreou
backed away Thursday from a proposal to hold a referendum on a European
bailout plan as Greek politicians appeared to be rallying around the
rescue despite the tough austerity measures it entails.
The move came after the country’s main opposition party dropped
its objections to the bailout package and indicated it would back the
measures. But the opposition also called for new elections, which
Papandreou opposes, suggesting that a deal could still fall apart.
Papandreou’s proposal to hold a national referendum on the
bailout plan, a vote that would also determine Greece’s future in the
euro zone, had caused fissures within his Socialist party and sent
shockwaves through Europe. Thursday evening, he told an emergency
cabinet meeting that if the opposition agreed to the bailout, there was
no need to put it to a popular test.
Apparently proposing a referendum on the bailout proposal - which was likely to fail, meaning no bailout - forced the issue. The opposition could have staged their own opposition to the proposal, but now they are stuck with it. To not support it would have risked the future of the European Union. This was less about the merit of the bailout than determining how best to rally support for it.
That raises an interesting point should we have national referenda in the United States? The agreement imposes costs on the general public. Should they be able to vote on it? Is it the right thing to do? But this creates tremendous uncertainty prior to the election. And what if they decide against the measure and Europe falls apart as a result. It wouldn't be the first time.