Oxi: Greece rejects bailout
By admin July 5, 2015


On Sunday 5th July 2015 Greece rejected the terms of an international bailout. After polls closed on the referendum promised by Prime Minister Alexis Tsiparas, over 60% of Greek voters said no to continuing a further 5 year $270 billion bailout package. Some suggest this will signal a Grexit and the beginning of the end of modern Europe

The referendum has been a result of a 5 year struggle that started in 2010 to maintain Greece in the Eurozone, after Greece admitted to cooking the books so that it appeared it was meeting minimum European budget requirements so that it could enter the EU.

At the beginning of the crisis a Grexit seemed unthinkable as European and US banks held hundreds of billions of dollars in Greek debt. Now as banks and financial institutions have limited their exposure and European banks claim they are safe, some now suggest this is a very real option. This would devastate the Greek economy, even though Russia and China have been mentioned as possible saviours to the Greek economy, and  have far reaching implications for Europe and global markets.

Greece is currently in default to the IMF and owes the European Central Bank a payment of €6.7 billion in two weeks. The results of the referendum give Alexis Tsiparas the outcome he was hoping for, as he is against strict budgetary cuts and austerity, believing a democratic vote will strengthen his position against Europe even as they seem to be preparing for the possibility of Greece leaving the Eurozone. Alexis Tsiparas said that the voters granted him ‘’not a mandate against Europe, but a mandate to find a sustainable solution that will take us out of this vicious circle of austerity.’’

As Greece stands on the precipice of leaving the EU, and similar financial crises loom in Portugal, Italy and Spain, there are growing questions about whether the European Union can survive especially as the UK –although not a member of the Euro – considers leaving the European Union after it holds its own referendum.

For more information please visit:–eu-euro-bailout-live

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