In November 2011 Greek Prime Minister George Papandreou was summoned for emergency talks in Cannes, France to defend his plan for a referendum intended to validate the second bailout agreement and the debt restructuring plan.

Papandreou argued that a “yes” vote on the terms of the agreed program would soothe the rising tensions in Greek society and create much-needed consensus for the “reforms” that the Greek government had agreed to undertake.

The key eurozone players insisted that the only option on the table was an “in/out” referendum on Greece’s membership in the eurozone and the European Union (EU). Faced with a rebellion in his party, Papandreou shelved the referendum plan, conceded defeat, and resigned. The ensuing coalition government ratified the catastrophic agreements, deepening the economic crisis and further diminishing Greece’s bargaining power.