In a landmark referendum on July 5, 2015 Greeks have decisively rejected the austerity measures set out by European powers through European Central Bank (ECB) and European Commission and IMF (troika) to continue providing funds under the bailout. According to the reports with all votes counted 61.31% Greeks rejected the proposals. Thus Greeks have given a resounding NO to the terms of creditors. The vote was preceded by what has been called financial terrorism and financial carpet bombing with ECB refusing to provide Greek banks with liquidity and creating maximum mayhem to warn Greeks from voting NO. But Greeks were not to be deterred as they have been through a lot worse for last five years of austerity when this high per capita income country has been reduced to middle level income country.
Greece Govt. is saying that this vote will strengthen its position in the negotiations with its creditors. Prime Minister of Greece Tsipras has said that it was a referendum on the specific question of terms set out by creditors on June 25. He has also moved to replace Finance Minister Yanis Varoufakis who has come to be detested by creditors. However it is not Varoufakis but the Greece Govt’s refusal to follow the troika’s prescription on austerity that is detested by International Financial Institutions.… Read More