This has been a surreal week to say the least.  On Monday night I glanced at twitter to see if there was anything interesting happening in the world.  I was sorry when I saw a stream coming through suggesting that the Greek PM had just announced his intention to hold a referendum on the bailout package for Greece.  I couldn’t believe what I was seeing, but it was substantiated a few minutes later on the 9 o clock news.   I was quite incredulous.  We had travelled to Brussels twice the previous week to two crisis summits aimed at stabilising the Eurozone.  The negotiations were fraught and difficult.  Wednesday’s summit went on until the wee hours.  It looked for most of the night like a deal would not be reached.  When the Taoiseach emerged from the Heads of State and Government meeting at 3.30am with the good news that agreement had been reached at the 11th hour on the most contentious aspect – the Greek debt write down which had been negotiated with the banking industry – I cannot express the sense of relief that was felt amongst the Irish delegation.  This was good news for Ireland and good news for Europe.  A hard won deal, signed up to by all 17 Eurozone members.  After the usual press briefings we flew home and I got to bed at 6am.
The reaction on the markets was positive the next day and it seemed that the global media was generally positively disposed towards the deal. It had dealt fairly comprehensively with the three key issues – Greek debt sustainability, bank recapitalisation and crucially for Ireland the bolstering of the EFSF, the financial fund which is to be used as a firewall to ring-fence the Greek debt problem and prevent serious contagion spreading to other vulnerable Eurozone countries.  Crucially for Greece, this deal ensured the continuance of IMF/EU funding to the Greek Government to fund its public services.  
All the more inexplicable then that 5 days later PM Papandreaou would announce a referendum on a deal that he had already signed up to on behalf of the Greek people and that was essential for the survival of the Greek economy.   It would perhaps have been timely to announce a referendum on the bailout deal 12 months ago, rather than now, when the future of the currency is under such immediate and immense pressure.
Whatever happens in Greek politics in the coming days and weeks, it is essential that we do three things.  Firstly all members of the Eurozone must recommit to the monetary union and put it beyond doubt that we will ensure the stability and survival of our currency.  This is of vital importance.  If the currency goes belly up, let no one be under any illusion, the European economy, including our own, will also go belly up.  
Secondly, it is essential, given the heightened pressure on the currency zone and the spiralling cost of borrowing for a number of countries, most particularly Italy, that the member states allow the ECB to expand its role to underpin the EFSF fund. If this does not happen, the credibility of the EFSF will be called into question and contagion will ensue.  The outcome of this does not bear thinking.  
Finally, we must re-pledge our commitment to, and solidarity with Greece.  We are in this together.  The Greek people have undergone hardship in the past two years, and they have more hardship to endure in the coming years.  As Europeans we must empathise with each other and support each other.  The sharp talk of cutting Greece loose from the Euro currency should stop.  Our focus must be on rescuing Greece and rescuing the Eurozone.  This is possible with the right will and an understanding that from mutual sacrifice comes mutual gain. No nationality knows this more than the Irish.