Saturday, June 27, 2015

Greece will hold a referendum on debt deal

Mind you that at the time I write this the deal is not even signed yet. 

Finance Minister Yanis Varoufakis warned that "every time we make a concession and we walk three fourths of the road, the institutions do exactly the opposite". But even then he did hope to reach an agreement today.

Unspecified "Troika" speakers also agreed that an agreement today is likely. 

The referendum will be held on July 5th. 

Varoufakis tweeted in this regard:
Democracy deserved a boost in euro-related matters. We just delivered it. Let the people decide. (Funny how radical this concept sounds!)

The official stand of Syriza is to ask for a "yes" "NO" (see update) vote. Right-wing nationalist coalition partners Independent Greeks (ANEL) have asked for a "no". PASOK considered the move "irresponsible". 

I'd personally vote "no" myself (because I believe unilateral bankruptcy and a socialist praxis is the way to go) but I do think it is not just important but a fundamental democratic need that the Greek People is the one to decide in such crucial matters. If they would have been asked five years ago, maybe we would not be where we are now. 

Sources: RT, Público[es].


The actual stand of Syriza and the Greek government is to ask for a "no". In other words: they feel that they are conceding too much and that they won't go ahead unless the Greek People demands them to do so. 

Brussels warns that the call of a referendum means the end of negotiations. It's plausible that Tsipras et al. already expected that and it may be the way to break useless negotiations in the most democratic and transparent possible way.

In effect it seems to mean that the Greek default is a fait accomplí and now begin the legal squirmishes on whether the Bank of Greece can print euros or not, whose fault is it, etc. Depending on the details it may result on formal suspension of Greece's membership in the EU (although a single country other than Greece could veto that decision even with an abstention, as it requires a yes vote by every single other member state).

Another legal squirmish may take place in the Greek parliament if the conservative opposition demands a no-confidence vote, which Tsipras will no doubt win, delaying the referendum process by maybe 3 days.

In any case the moment of truth has arrived.

Sources[es]: Principia Marsupia (Twitter), Público.

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