UPDATE 2: Greek lawmakers on Sunday authorised prime minister Alexis Tsipras’ proposed 5 July bailout referendum, setting Greece on course for a plebiscite that has enraged international creditors and increased Greece’s chances of exiting the eurozone. The government easily passed the 151-vote threshold needed to authorise the referendum, with deputies from the far-right Golden Dawn voting with the government and pro-European opposition parties New Democracy, Pasok and To Potami and the KKE Communist party voting against.
UPDATE 1: Greece nears euro exit, as bailout extension refused......
Eurozone finance ministers on Saturday (27 June) refused to extend Greece’s bailout to accommodate its referendum next weekend, plunging the single currency area and Greece itself into legal and political uncertainty.
12:35 EST I just got off the phone with my family in Greece. We all agree that the end goal is to destroy the Syriza party. My son says it looks like a back door deal may have already been made with New Democracy. Which would not surprise me at all. We usually end on an optimistic note, but not this time. He said, "No one knows what will happen now, as we're going into uncharted waters.
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"Let us allow the people to have the last word, let them decide on the country’s fate"
The words were spoken by then PM Papandreou back in 2011 when the Pasok party was in power.
Last night I was on the BBC site, reading that PM Alexis Tsipras was headed back to Athens to address Parliament. Then a Breaking News blurb came on the screen, that Tsipras had just announced Greeks would vote on a referendum on its bailout program on July 5, to let the people decide.
If you recall back in 2011, PM George Papandreou did the same to the same shock and awe......and what happened to Papandreou and the Pasok party after that.
ATHENS — In a surprise move that jolted Europe and put his political future in play, Prime Minister George A. Papandreou announced Monday that his government would hold a referendum on a new aid package for Greece, putting austerity measures — and potentially membership in the euro zone — to a popular vote for the first time.
Greek MPs will vote late tonight (midnight Athens time) on whether to hold the referendum.
I haven't spoken with my family in Greece in the past few days as they (like most of the country are so filled with angst). My level is quite high also. All seems to be in chaos (a Greek word, and probably angst also). This must end with some hope for the Greek people, as they are living on fumes. One can't keep up this level of uncertainty and see any daylight. You can't keep seeing only a train at the end of the tunnel, only darkness.
Analysts at Barclays have warned that the referendum plunges Greece into fresh turmoil, whether the result is Yes or No.
What happens if Greece votes no?
Government officials are currently emphasizing that this is simply a vote on the negotiations and not on the Greek position within the EMU [eurozone] and EU. In reality, the two questions are related. We believe that the odds of a Greek exit increase substantially if Greece votes no. And if capital controls have not been imposed by then, they would almost certainly be after 5 July.
What happens if Greece votes yes?
Every indication is that the existing Greek government is opposed to the creditors’ current terms. Consequently, it is very possible that in the event of a yes vote, Greece would face a political crisis, with a new government having to be formed in order to finalize the negotiations and implement the agreed-upon reforms.
It is hard to see many positive outcomes, no matter what......
What will shock Greek referendum mean for the Eurozone and Greece?
It is hard to see many positive outcomes from here. No matter what, capital controls and bank holidays will likely be needed in the short term (and possibly longer) in Greece. Even if the referendum gives a positive outcome, this may still provoke uncertainty. It is not clear whether the deal to be voted on is actually still on the table.
Furthermore, Tsipras has set himself up to reject the proposal, so it might be hard to avoid new elections if the people back the creditors. If there is a ‘No’ vote, this is likely to be seen as a vote for Grexit, since any offer on the table from creditors will be a ‘take it or leave it’ one. There remains a small chance that the referendum may not come to pass, if a new deal is offered or the bill is not approved by the Greek Parliament or President.
However, given Tsipras’s insistence on the referendum, it would again be hard for him to survive such an event.
Banks are being supplied with cash and ATM machines are working, which should hold thru June 30. But latest word from Brussels is that eurozone ministers are unlikely to offer Greece an extension at today’s eurogroup.
I have come to the conclusion that the goal is to break the leftist Syriza government.