How the Euro Was Saved

Italy has no credibility

Mr Sarkozy’s six-point plan, obtained by the FT, was clear and tough: Mr Papandreou must accept the bailout plan agreed the week before, and no further aid would be forthcoming until his parliament voted its assent.

“We are always ready to help Greece, despite the unilateral decision to announce [the referendum] without any prior notification,” point two read, a clear reflection of Mr Sarkozy’s anger. Point six was clearest of all: “The referendum shall be only on the membership of Greece in the euro area and the European Union.”

Mr Papandreou would later claim it was primarily Mr Sarkozy who fought with him to change the referendum’s wording to “in or out” of the euro, and that Ms Merkel was on his side. But those in ...