(AP Photo/Emilio Morenatti). A supporter of the No vote waves a Greek flag in front of the parliament after the results of the referendum at Syntagma square in Athens, Sunday, July 5, 2015.
Advertisement
Opinion polls over the months have shown a large majority of Greeks want to remain in the euro. Tsakalotos played a prominent role in the last round of debt talks, which ended abruptly on June 27 when Tsipras called the surprise referendum. Without funds to pay salaries and allow commerce to occur, the Greek government could eventually be forced to issue IOUs or some other medium of exchange, which might gradually evolve into a parallel currency. And Greece would stay in the Euro. He also said that the time is not right to start negotiations for a new aid programme.
The best-case scenario could take either of two forms, depending on whether a deal is reached.
Meanwhile, Greece’s Finance Minister, Yanis Varoufakis, who had infuriated European counterparts by lashing demands for economic reform and welfare cuts, announced he was stepping down to try to ease friction with creditors. He said Obama could phone European leaders this week to discuss the situation.
German Chancellor Angela Merkel and Mr Hollande have agreed that “the vote of the Greek people must be respected”, as reported by a spokesman.
We’ll follow the news on Greece throughout the day, and we’ll update this post as we hear more.
Authorities on Monday extended an eight-day bank closure amid fears cash machines in the country were running dry.
Greek banks remained closed Monday, with only a few branches opening for pensioners to receive emergency assistance.
Without more emergency funding from the European Central Bank, Greece’s banks could run out of cash within days. This was an attempt by the Greek people to end a five-year austerity tragedy in Greece, but whether this will lead to a bigger tragedy is a question hard to answer.
The ongoing Greek drama hurt stocks around the world, particularly in Europe.
Tsipras, backed by many economists, contends that what Greece needs more than anything is debt relief and that the austerity measures the Germans in particular are demanding would shrink his country’s economy faster that its debt.
Talking ahead of the referendum vote, in which Greeks rejected eurozone bailout terms, Ms Konstantopoulou, the highest ranking female politician in Syriza, denied that Syriza was taking a “risk”.
Tsipras can now claim a strong domestic mandate to negotiate after the plebiscite, in which 61 percent voted “no” to the latest creditor proposals.
Speaking in a televised address, he said: “Given the unfavourable conditions last week, you have made a very fearless choice”.
Sunday’s referendum, however, represented one of the clearest tests to date of what would happen to financial markets if Greece left the euro.
Advertisement
The rhetoric out of Paris, Madrid and other capitals was more conciliatory towards Greece this morning, with French Finance Minister Michel Sapin saying a Greek debt writedown should not be considered taboo.
