Although it may sound as a game-changer, Greek ‘No’ – meaning no interest in European proposal, followed by a resignation of Greek Finance Minister Varoufakis, is about to start another round of talks, nevertheless now without this non-European-friendly factor.
The plebiscite in Greece showed 61% support for the anti-austerity government, backed by incumbent Prime Minister Alexis Tsipras and resignating Varoufakis. It had one question, asking Greeks whether they would accept the terms for aid, set by creditors, comprising of earlier retirements cuts and hike in sales tax.
Varoufakis resignation is seen as a helping factor in negotiations with the major creditors, which are expected to continue with slightly lower pressure now. His dispute were extremely visible after direct negotiations with Germany’s Finance Minister Wolfgang Schaeuble.
Now the time is running out for the south-European country to make a new deal before catastrophy. Greek banks already experienced a firghtened nation last week, so Tsipras’ government imposed capital controls and prevented bank runs by limiting withdrawals to only €60 per day.
But what about the European Union? What else can leaders do? As always they will meet for emergency summit with even German Merkel and French Francois Hollande holding talks in Paris on the same issue. Moreover, the European Central Bank will have to think about its steps as well, as Tsipras’ banking decree is about to expire at midnight. Following the Greek plebiscite, Tsipras stated: “I’m confident that the ECB fully realizes the humanitarian side of the crisis in our country.”
But as always, the demand for money remains as well as the same problems, so besides this proclamative and emotional posing, Greece is still in need of money and the eurozone does not want its credit to be hurt with leaving member. What can we expect? Just a short-term calm down and ongoing talks with possibility of couple of adjusted conditions, nevertheless creditors will try to make an agreement with Greece again.
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