Greece’s Referendum: Where Do ‘Yes’ and ‘No’ Votes Lead?

World » SOUTHEAST EUROPE | July 5, 2015, Sunday // 09:17
Bulgaria: Greece’s Referendum: Where Do ‘Yes’ and ‘No’ Votes Lead?

Ten million Greeks have been asked by their left-wing government to vote in Sunday’s referendum that poses the biggest challenge to the euro currency since its adoption.

The government coalition, which comprises radical left Syriza party of Prime Minister Alexis Tsipras and populist Anel party, has urged Greeks to vote ‘No’, claiming that a majority in favour of rejection would not lead to the country’s exit from the euro.

In the ballot paper Greeks are asked whether to accept or not the bailout offer that demands more austerity, proposed by their country’s lenders. Their choice on Sunday is expected to determine the economic future of Greece.

Greeks are asked the following complex question: "Should the proposal that was submitted by the European Commission, the European Central Bank, and the International Monetary Fund at the Eurogroup of 25 June 2015, which consists of two parts that together constitute their comprehensive proposal, be accepted? The first document is titled 'Reforms for the completion of the Current Programme and beyond' and the second 'Preliminary Debt Sustainability Analysis'."

There are two possible answers: "Not agreed/No" on top, and "Agreed/Yes" below.

What is at stake in Sunday’s vote?

A ‘Yes’vote will be in favor of Greece remaining a part of the eurozone. Those Greeks voting ‘Yes’ say they accept bailout funds in exchange for agreeing to cuts in budget spending and other austerity measures sought by the country’s ‘troika’ of lenders - the International Monetary Fund, the European Central Bank and the European Commission. 

If a majority votes ‘Yes’, this would also signal that Greeks have largely lost faith in Tsipras and his government. The outcome could force leaders to resign, which would usher in a new provisional government. Greek Finance Minister Yanis Varoufakis has already said he will resign if Greeks back the bailout proposal set forth by the country’s creditors.

A ‘No’ vote on Sunday is a rejection of the austerity demands of Greece’s international creditors. Tsipras tried to reassure Greeks this week that a vote against the bailout would give him a stronger negotiating position in talks with creditors and would help Greece strike a new bailout deal with better terms.

However, eurozone policy makers, including the Eurogroup chief Jeroen Dijsselbloem, have flatly denied this prospect.If that’s true, and ‘No’ voters gain the upper hand in the referendum, Greece risks an exit from the eurozone. According to a Bloomberg News poll published on Friday,43% of responders backed a ‘No’, while 42.5% were in favour of ‘Yes’. The difference between the two camps was within the statistical margin of error of three percentage points.

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Tags: greece, Referendum, bailout, Tsipras, Syriza, creditors, lenders, Varoufakis, capital controls, Eurozone

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