We are in a far worse situation in Europe right now: Nomura

Alastair Newton of Nomura International spoke about the possible ramifications of the Greek referendum and why Europe is reacting so violently to it.

Below is the edited transcript of his comments on CNBC-TV18. Also watch the accompanying video. Why are the markets nervous about the EU crisis? Today we are in a situation in the euro zone which is by far the most dangerous situation we have been in since the start of this crisis in February 2010. Markets have got this one right; there is every reason for them to be very nervous. Why political stability in Greece is concern? If we go back two years to the last Greek election, George Papandreou was elected with 159 out of 300 members of parliament which is stable majority. But 48 hours ago they were down to 154 members - no longer a stable majority. Since then we have had further defection. By no means it is clear that we are going to get a yes vote on Friday. We don