That in effect, is the referendum question that the Greeks just answered. The KKE called on its supporters to spoil their ballots rather than vote no. Disciplined cadre and coherent theory are crucial ingredients for a revolution, and the KKE’s strategy is withholding these vital elements from the emerging movement. The Greek government has to be clear in its own mind if it wishes to remain in the euro zone.
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Such a rupture would make it harder for the European Central Bank to continue to prop up Greek banks.
Pouring more money into the black hole of Greece’s finances will not be popular with voters in other eurozone countries, particularly in the more hardline Baltics, Finland and the Netherlands, said Anne Laure Delatte, an economist at the French Institute for Scientific Research. Japan’s currency advanced to the strongest in six week against the euro on Monday after Greek voters rejected austerity measures and China’s stock market rout spurred demand for safer assets.
Rania Antonopoulos told the BBC that there is still time to get a deal. But if the European Central Bank and eurozone countries decide not to let the Greek banks collapse, depositors might be forced to take some losses.
“There are still 48 hours, there is still this week”, said Antonopoulos.
“As much for Greece as for Europe, I’m sure”. Greece’s persistent desire to remain in the eurozone means that it does not have the capacity to create currency to recapitalize its banking system. Even “yes” is no guarantee the creditors will agree to lend.
The German economy minister, Sigmar Gabriel, said that the vote meant Tsipras had “torn down the last bridges across which Europe and Greece could move toward a compromise”.
George Serafeim: Prime Minister Alexis Tsipras is right that the old political establishment corrupted Greek institutions and left the country bankrupt, and that the programs imposed by creditors have unfairly impeded the Greek economy through harsh austerity measures. He says it’s because other eurogroup ministers are fed up with him.
Schulz said that an immediate renegotiation was “necessary” and “possible” but depends on Greek proposals. The Greek government has requested an increase of the ELA-limit after the referendum results were in.
After opening sharply lower, European stock markets recovered a few ground on the news.
The pan-European FTSEurofirst 300 index was down 1.2 percent, led lower by banks.
Over months of negotiations, Varoufakis’ relations with his peers in the 19-country eurozone had clearly deteriorated.
“The basis of a dialogue is on the table, but it’s up to Greece to show us that it takes the dialogue seriously and that it knows it can stay in the euro and that there are decisions to make”, Sapin told Europe 1 radio Monday. This is what is happening in Europe and it is too simplistic to push the blame on the Germans or on the Greece – or even on the troika. “It’s Greece that is in difficulty”. “But there is no escape from the Greek labyrinth with a weak Europe that isn’t growing”.
Tsipras spoke of a victory for democracy.
Failure to do a deal would be a boost for populist leaders like France’s Marine Le Pen and Britain’s Nigel Farage who made gains in European Parliament elections a year ago, said Pascal Delwit, political science professor at Free University of Belgium. “No” won in a landslide because of the huge mobilization of poor and working people in Greece in the short run-up to the vote, which was so massive that the fear-mongering campaign of the corporate media and establishment politicians was drowned out by the defiance of the masses.
“Every government in Europe has a democratic mandate”.
Third, a new agreement appears unlikely to be on more favorable terms than that on offer prior to the referendum. Market reaction: Buy the dipsThe polls ahead of the referendum signaled a tighter vote, so the “no”-result is a negative short-term for markets””. I suspect, with no proof, that last Monday’s 300 point sell off was more about Puerto Rico than Greece.
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No replacement has yet been named. Either the Eurozone will “capitulate to Greece… changing its entire modus operandi” or Greece will have to leave the Eurozone. He had visibly annoyed numerous eurozone’s finance ministers during Greece’s debt negotiations.
