Thursday, July 2, 2015

Tsipras resign if he wins the “yes” in a referendum – The Economist

The Greek Finance Minister Yanis Varoufakis said that the government of radical left Syriza could resign if he wins the referendum ‘yes’ to the proposals of international creditors.
 
 

ATHENS After the creditors decided not to negotiate with Greece until Sunday’s referendum, the de facto election campaign kicked off Thursday with Greek government campaign by the ‘no’ and you could resign if he loses.

The Greek Finance Minister Yanis Varoufakis said that the government of radical left Syriza could resign if the referendum wins the “yes’ to the proposals of international creditors.

“We could resign, but will do so in a spirit of cooperation with those who will take over,” said Varoufakis, who said that “cease to be” minister if the ‘yes’ wins.

Markets international and creditors of the country’s Fund International Monetary (IMF), European Central Bank (ECB) and European Commission expectantly await the outcome of the referendum, which could spell the end of the executive led by Alexis Tsipras if he wins the ‘yes’ or push Greece out of the euro, with unpredictable consequences for the entire region.

Meanwhile, Greek citizens fulfill their fourth day of capital controls, bank closures and limits on cash withdrawals (60 euros per day) , which adds even more difficulties that have left five years of recession.

The sense of a referendum

To Athens, the goal of the referendum is that the people reject “harsh” conditions imposed by the country’s creditors, which is “a decisive step towards a better deal,” said Tsipras said.

In contrast to many EU leaders, the meaning of the query is clear: Greece is whether or not to remain in the euro

So the consequences are judged very differently.. To Varoufakis, “if he wins the NO recommend the Greek people, begin immediately to negotiate and, believe me, there will be an agreement on grounds very different from those of the institutions’ creditors, as stated on Thursday at the Bloomberg chain.

A very different view of the French President, Francois Hollande, despite being one of the ‘comprehensive’ in negotiations with Athens. “If you win the other, negotiations can easily be made. If you do not, we go into the unknown,” he said Thursday from Benin.

“If ‘no’ (…) the situation will be very difficult for Greece (…), economic problems will be more important and a new program of aid much more difficult to implement, “said Jeroen Dijsselbloem by his side, the president of the Eurogroup.

Greeks are not willing to accept “unpleasant measures (…) there is no basis for a new aid program, and the question will be whether there is a basis for Greece is in the euro zone,” he added.

On Tuesday, Greece entered ‘default’ with the IMF being unable to cope with a maturity of 1,500 million euros with this institution. Athens, with major liquidity problems receiving no financial support from creditors for five months, has another pending payment of 3,500 million euros with the ECB on 20 July.

“no” wins but loses strength

According to a survey released Wednesday by the Greek press, the ‘no’ was winner but has lost momentum since it was implemented last Monday playpen in the country.

The relationship between the ‘no’ and ‘yes’ has gone from 57% -30% 46% -30%, with many undecided. Another poll released by informal social networks, gave a slight victory to ‘yes’.

Alexis Tsipras urged Thursday the Greek “national unity” to “overcome the temporary difficulties” that crosses the country and promised that after the referendum the country will remain “united”.

Analysts at ING-DiBa bank believe that although Greece vote ‘no’, the eurozone will not leave the country, but warned that “too trust has been destroyed “by Tsipras in the negotiations.

However, Holger Schmieding, the German bank Berenberg, considers that the ‘no’ acarrrea a” very high “risk of ‘Grexit’. “After the ‘no’, the Greek economy and its banks will be plunged into chaos (…) and Greece will have to print its own currency, possibly after a brief and tumultuous interlude” he says.

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