Greek referendum on rescue deal sends shares tumbling

Greece sent markets tumbling overnight and this morning after announcing plans to hold a referendum on the European debt deal designed to save the country.

London's FTSE 100 opened almost 100 points lower at 5,448 on Tuesday, while both the German Dax and French Cac fell by more than 3%. Greek Prime Minister George Papandreou said yesterday that last week's rescue deal - which will see Greece granted a €100bn-euro loan, with bond holders taking a 50% haircut on their holdings - had to be passed by the people of Greece. According to the Telegraph, Papandreou told reporters: "The command of the Greek people will bind us. Do they want to adopt the new deal, or reject it? If the Greek people do not want it, it will not be adopted." There ...