European Selloff Getting Worse, Sarkozy To Make Emergency Call To Merkel About Greek Referendum

wrecking ball

Photo: paul goyette, Flickr

The news that Greece is planning on holding a referendum on austerity and aid is destroying European markets.Milan is off over 5%.

Germany, France and Spain are off around 4%.

European banks have given back all post-summit gains, with SocGen down 14%.

Earlier we mentioned how, predictably, Italian yields were blowing out once again.

So seriously, what does Europe do now?

UPDATE: Sarkozy will call Merkel this morning to discuss the referendum, according to the AFP.

SEE ALSO: Here’s who’s freaking out over a possible Greek default >

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