This article is from the source 'independent' and was first published or seen
on .
It last changed over 40 days ago and won't be checked again for changes.
Greece referendum: Greeks say 'No' to austerity and plunge Europe into crisis
Greece referendum: Greeks say 'No' to austerity and plunge Europe into crisis
(35 minutes later)
The people of Greece have presented the European Union with the greatest political crisis in its history after voters decisively rejected years of further austerity and effectively challenged Brussels to throw a member state into the economic abyss.
The people of Greece have presented the European Union with the greatest political crisis in its history after voters decisively rejected years of further austerity and effectively challenged Brussels to throw a member state into the economic abyss.
The Syriza-led Government in Athens celebrated what it called a victory of democracy over economic “terrorism” as early results showed people had overwhelmingly voted against the demands of the country’s hated creditors in a referendum.
The Syriza-led government in Athens celebrated what it called a victory of democracy over economic “terrorism”, as early results of a referendum showed that Greeks had overwhelmingly voted against the demands of the country’s hated creditors.
But such rhetoric has done little to endear them to the mainly German and French politicians they will now have to convince to save Greece’s economy. Germany’s economy minister warned Greece was heading for “bitter abandonment and hopelessness” following the vote.
Such rhetoric has done little to endear Athens to the mainly German and French politicians it will now have to persuade to save the country’s economy. Germany’s Vice-Chancellor, Sigmar Gabriel, warned that Greece was heading for “bitter abandonment and hopelessness” following the vote.
European officials had lined up all last week to warn that a No vote would mean exit from the euro, but Greece’s voters effectively decided to call what Syriza insisted was a bluff.
European officials had lined up all last week to warn that a No vote would mean exit from the euro, but Greece’s voters decided to call what Syriza insisted was a bluff.
At a meeting in Paris on Monday German Chancellor Angela Merkel and French President Francois Hollande, who have spoken by phone, may take one of the most important decisions in recent EU history. A Eurozone leaders' summit was also being hurriedly prepared for Tuesday. German Chancellor Angela Merkel
In a statement, the European Commission (EC) said it “takes note of and respects the result of the referendum in Greece”.
They will be faced with a choice of either swallowing their pride, putting European solidarity first and making a deal that would see their own taxpayers lose money or cutting Greece off, forcing it to start printing its own currency as the euros run out.
“[EC President Jean-Claude] Juncker is consulting … with the democratically elected leaders of the other 18 Eurozone members as well as with the heads of the EU institutions,” it added.
The country’s financial institutions have a lending reserve of no more than €500m (£356m) and may not be able to dispense any more euros by mid-week unless they receive emergency funding from one of Greece’s main creditors, the European Central Bank.
German Chancellor Angela Merkel
Exit from the euro would cause rampant inflation as the new ‘drachma’ plummeted in value against the euro, adding further pain after years of austerity that has seen Greece’s GDP slump by a quarter in seven years, youth unemployment rise to about 50 per cent and suicide rates soar.
At a meeting in Paris on Monday, the German Chancellor, Angela Merkel, and French President, François Hollande, who spoke by phone on Sunday night, may take one of the most important decisions in EU history. A eurozone leaders’ summit is also due to be held on Tuesday.
However Prime Minister Alexis Tsipras appeared confident that his negotiating team, strengthened by their new mandate, would be able to secure a new, less severe bailout deal. “Today is a day of celebration because democracy is a celebration, it is joy. And when democracy conquers fear and blackmail, then it is also redemption, it is a way out,” he said after voting in central Athens.
They will be faced with a choice of either swallowing their pride, putting European solidarity first and making a deal that would see their own taxpayers lose money, or cutting Greece off, forcing it to start printing its own currency as the euros run out.
Greek TV reported that he spoke to Mr Hollande and several other European leaders by phone as early results showed the No camp winning by about 60 to 40 per cent.
The country’s financial institutions had a lending reserve of no more than €500m (£356m) on Sunday and may not be able to dispense any more euros by mid-week unless they receive emergency funding from one of Greece’s main creditors, the European Central Bank.
And there were some glimmers of hope for Greece with Emmanuel Macron, the French Economy Minister, saying Europe could not “crush an entire people” and a compromise must be found.
Addressing the nation on television, the Prime Minister, Alexis Tsipras, thanked voters for making a “very brave choice” and said the result showed that “democracy won’t be blackmailed”.
It would also mean that debt relief would be “on the negotiating table”, he insisted, something that eurozone leaders have previously resisted. Greece owes about €323bn , about 60 per cent of which is owed to eurozone countries.
“The Greek people today gave an answer to what [kind of] Europe we want. What we want is a Europe of solidarity,” Mr Tsipras added.
Greek television reported that he spoke to Mr Hollande and several other European leaders by phone as early results showed the No camp winning by about 60 to 40 per cent.
And there were some glimmers of hope for Greece, with Emmanuel Macron, the French Economy Minister, saying Europe could not “crush an entire people” and a compromise must be found.
Panagiotis Kouroublis, Greece’s Health Minister, told The Independent that he believed “democracy works in Europe” and the referendum result would “force everyone to reassess their position”.
Panagiotis Kouroublis, Greece’s Health Minister, told The Independent that he believed “democracy works in Europe” and the referendum result would “force everyone to reassess their position”.
“Europe will have the responsibility. Europe cannot simply shift its responsibilities to others,” he said. “Europe will have to give the banks the possibility [to open] and that means respect to democracy, and to immediately begin the negotiations and conclude them in no time. Negotiations could start and conclude tomorrow.”
“Europe will have the responsibility. Europe cannot simply shift its responsibilities to others,” he said. “Europe will have to give the banks the possibility [to open] and that means respect to democracy, and to immediately begin the negotiations and conclude them in no time.”
But leading German politicians appeared in little mood to show mercy.
Antonis Samaras, the former Greek Prime Minister, announced his resignation as leader of the main opposition New Democracy party as the result became clear. He urged Greeks to pressure the government to make a quick deal with its creditors.
German economy minister Sigmar Gabriel told the Tagesspiegel newspaper: “With the rejection of the rules of the euro zone ...negotiations about a [bailout] programme worth billions are barely conceivable.
But leading German politicians appeared in little mood to show mercy. Mr Gabriel told the Tagesspiegel newspaper: “With the rejection of the rules of the eurozone … negotiations about a [bailout] programme worth billions are barely conceivable.”
“Tsipras and his government are leading the Greek people on a path of bitter abandonment and hopelessness.”
And Poland’s Prime Minister, Ewa Kopacz, said a No victory would mean “the path of Greece can be only one: leaving the eurozone”.
And Poland's Prime Minister, Ewa Kopacz, said a No victory would mean “the path of Greece can be only one: leaving the Eurozone”.
On the streets of Athens, the mood was a mix of celebratory defiance and fatalism. Thousands of people flooded into Syntagma Square, waving flags, blowing whistles and chanting. “I feel joy and satisfaction,” said Maria Siamaki, an unemployed secretary waving a Greek flag. “I don’t care if I’m hungry tomorrow or if we go bankrupt, I don’t care. I have a kid who is sick and I might not be able to take care of [the child]. But I don’t care, we’re finding again our lost pride and dignity and that’s the most important thing.”
On the streets of Athens, the mood was a mix of celebratory defiance and fatalism. Thousands of people flooded into its main Syntagma Square, waving flags, blowing whistles and chanting.
There have been fears of a breakdown in law and order. Last week Panos Kammeno, Greece’s Defence Minister and leader of the nationalist Independent Greeks party in the coalition, warned the army would step in to ensure “stability in the country in the worst moments for our homeland” if required.
“I feel joy and satisfaction,” said Maria Siamaki, an unemployed secretary waving a Greek flag on the top of the square's stairs.
But on Sunday night he put such bleak thoughts to one side as he joined in the celebrations. “The Greek people have proven that they won’t be blackmailed,” Mr Kammeno said. “They won’t be terrorised. They won’t be threatened. Democracy has won.”
“I don't care if I'm hungry tomorrow or if we go bankrupt, I don't care. I have a kid who is sick and I might not be able to take care of [the child]. But I don't care, we're finding again our lost pride and dignity and that's the most important thing.
“There was such fear-mongering and even with our closed banks and we still managed to say ‘no’.”
Antonis Roris, a public transportation driver, chose uncertainty over the continuation of years of austerity that have brought Greece to its knees.
“We know what the 'yes' prospect would lead to; we want to know where the ‘no’ now will take us,” he said.
Dimitri Nakis, 80, who lives on a farm in Chalkida about 80km from Athens, said: “I survived the Nazi occupation, I want to die standing up - I’m not scared of them or any of their measures.
“We will have a better deal with a ‘no’ vote. The referendum is a reaction to get better terms to the agreement. I can’t accept the current conditions, implementing measures that lead nowhere - but I don’t reject my debt.”
A shipping executive, who gave only his first name, Argyris, pointed out that the austery-for-bailout offer that the referendum was about had actually been withdrawn by the creditors.
“This entire referendum is silly - we’re being fooled by the EU and Tsipras. The proposal doesn’t exist anymore so I’m only voting ‘yes,’ but not for austerity, to the fact I want to stay in Europe,” he said. “I just want him [Tsipras] to go to Brussels and agree to a deal.”
Analysts suggested the party atmosphere in Greece would be short lived.
Deutsche Bank said the likeliest outcomes of a No vote were either that the Syriza-led government would fall as the money runs out and the country’s banking crisis spirals out of control or that Greece would leave the euro.
Speaking before the final result was announced, political analyst Wolfango Piccoli, of New York based Teneo Intelligence consultancy, doubted Mr Tsipras would survive the coming economic storm.
“Even if the Government here [in Greece] wins the referendum, the reality of everyday life will take over,” he said. “[The Government] might feel stronger on Monday morning but the reality of daily life - the financial economic reality -will eventually prevail and it will only be a question of time for Tsipras.”
ATMs have been running out of money despite a week in which the banks were closed and withdrawals were limited to 60 euros a day. Billions of euros in savings have been moved out of the country as people anticipated exit from the currency.
There have been fears of a breakdown in law and order. Last week Panos Kammeno, Greece's defence minister and leader of the nationalist Independent Greeks party in the coalition, warned the army would step in to ensure “stability in the country in the worst moments for our homeland” if required.
But he put such bleak thoughts to once side as he joined the majority of Greeks in celebration.
“The Greek people have proven that they won't be blackmailed,” Mr Kammeno said. “They won't be terrorised. They won't be threatened. Democracy has won.”
