He warned that the referendum result – which saw over 60 percent of Greeks vote to reject the austerity measures demanded by its global creditors – “comes with a large price tag attached… like all struggles for democratic rights”. “In a blog post he said the referendum would go down in history as the day when Aa small European nation rose up against debt-bondage”.
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The Greek government named economist Euclid Tsakalotos as the new finance minister after Yanis Varoufakis resigned at the prime minister’s urging Monday because his abrasive style alienated the creditors.
A replacement was to be announced later Monday. Almost 39 percent voted in favor.
But everything hinges on European reaction. The ECB, which does not confirm the meeting, holds the key to a short-term easing of market tension via its ability to provide cash to depleted Greek banks.
The margin of victory for “no” was far wider than expected.
Despite “political volatility” surrounding Greece’s situation, Earnest acknowledged there has been “limited spillover” to financial markets. Europe could force Greece out of the Euro Zone – a hostile move that probably would stir up more unrest in Greece, and perhaps elsewhere, than Europe’s simply holding firm on austerity and forcing Greece to make the formal exit.
The European Central Bank said on Monday it was keeping the level of emergency credit to Greek banks unchanged, putting the banks under increasing pressure as they try to cope with cash withdrawals. The assistance, now at around $100billion, has been maintained but not increased in past days, leaving the country’s financial system in a stranglehold.
“But to be clear, the Commission can not negotiate a new programme without a mandate from the Eurogroup”, Dombrovskis added.
Tsakalotos also said the government was “not discussing a parallel currency”.
But at least for now, it looks like markets are calling Tsipras’s bluff.
He noted that the referendum was “neither factually or legally correct” as Greeks were voting on proposals that had not been formally endorsed by the eurogroup of finance ministers and on a bailout programme that had expired.
German Chancellor Angela Merkel stressed the importance of Greece taking “responsibility” for reforming its economy, while French President Francois Hollande said it is important for Europe to show “solidarity” with Greece. “Of course, he was the guy who was at the center of those negotiations between Greece and its Eurozone partners”.
The Dutch finance minister had been a steadfast opponent of Greece as it sought better conditions during five months of bailout negotiations.
Greeks started casting ballots early Sunday in the closely watched bailout referendum, with opinion polls showing people evenly split on whether to accept creditors’ proposals for more austerity in exchange for…
The news media, dominated by Greek oligarchs, saturated the airwaves and the newspapers with stories about losing gasoline and medicines, while the plight of elderly pensioners was afforded far more attention than in the past, media experts said. On the sidelines of the talks, the ex- finance minister was often referred to as “impossible” do deal with.
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“We want as always a fair compromise”. “We have everything we need to manage the situation”.
