Sunday, July 5, 2015

Greece hopes the referendum that will decide their future – The Economist

The Greeks lived a day of reflection, on the eve of the referendum to determine the fate of the country in the euro zone and the fate of the government’s leftist Alexis Tsipras.

Divided, the Greeks observed this Saturday a day of reflection on the eve of a historic referendum to determine the fate of the country in the euro zone and the fate of the government’s leftist Alexis Tsipras.

After a campaign just one week, the Greeks vote on Sunday “yes” or “no” to the conditions set by creditors (the EU and the IMF) to close a deal to keep covering the financial needs of the country.

After five years of deep crisis, the population is very divided before the consultation, it became clear in the massive rival demonstrations Friday night in the center of Athens.

the “no” ardently defended by the government to negotiate “a better deal” with creditors, believe that this is the way out of a self-defeating austerity.

Supporters of the “yes” believe on the other hand is at stake the permanence of the country in the Eurozone and the EU, and see the “no” as the way open to the “chaos”, “isolation” and return to the drachma, the former national currency.

Pavlos, a retired 72 years questioned in front of a bank in Athens, Saturday saw the “very black” things.

“Now there is money, but it may not be next week. How will people do in their daily life? “.

The last two polls published on Friday pointed to a tight result in the referendum, which will take place in the yard and is the first in the country since 1974, when they voted to abolish the monarchy.

Under capital controls I set up for a week to avoid the total collapse of the banks, the Greeks can only withdraw from Monday up to 60 euros per person per day at ATMs.

From Tuesday, the country is in default to the IMF, which he did not pay a payment of about 1,550 million euros, and has no access to financial assistance from its partners in the eurozone, that in the absence of agreement on a program of adjustments and reforms are not extended their program.

Varoufakis denounced “terrorism” of creditors

Financial Times wrote that given the weakness of Greek banks, customers with deposits of more than 8,000 euros may suffer remove 30%. Finance Minister, Yanis Varoufakis, soon deny and dismiss it as “malicious rumor”.

Speaking to Spanish newspaper El Mundo, the minister also accused creditors (European Commission, International Monetary Fund and European Central Bank) of “terrorism” and of wanting to “humiliate the Greeks.”

“Why have forced us to close the banks? To instill fear in people. And when it comes to It spread terror, this phenomenon is called terrorism, “he said.

Far away seems already that day in May 2010, in which the then Socialist Prime Minister George Papandreou announced the order of the first bailout from the idyllic island of Kastellorizo.

The Odyssey announced by Papandreou, to which the idea of ​​a referendum in late 2011 cost him his job, resulted in six straight years of recession (2008 2013), which contributed to a large extent the austerity imposed by creditors.

At that time, GDP 25%, shrank unemployment bolted, forcing migrate thousands of young Greeks, and the local political scene in force for 40 years flew through the air with the emergence of new political forces such as Syriza, the left side, or the neo-Nazi Golden Dawn.

Tsipras repeated on Friday that a “no”, his government will have a powerful weapon to negotiate a good agreement with its partners, including a reduction in public debt close to 180% of GDP, an unsustainable level.

But in the game poker have become negotiations, the European partners will not shrink and German Finance Minister Wolfgang Schauble warned Friday that even if he wins the “yes”, the resumption of talks “will take time”.

Also in case of winning the “yes”, the government of Syriza would be in a very precarious position.

Varoufakis said this week that the executive could then resign case, but according to him, no matter what the result will end up having an understanding, because “Europe needs an agreement and Greece needs an agreement.”

While in Greece prevailed the day of reflection, several European cities like London or Dublin hosted on Saturday, Like previous days, demonstrations in support of the Greek government.

“Misery and IMF ñfuera!” proclaimed in Lisbon about 600 people at a rally in front of the Representation of the European Commission, who also chanted the motto: “Spain, Greece and Portugal, our path is international”

April

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