Greece says “No” to bailout

on July 6, 2015 by George Panagiotopoulos

In a national referendum on Sunday, Greek citizens voted “no” to a bailout proposal from the European Central Bank and Troika, the International Monetary fund. Internally, Greeks believe that this gives them leverage for a more favorable bailout. Greece was unwilling to accept the proposed austerity measures. Many believe that austerity is not the solution, and that in order to stimulate and grow an economy, spending is needed.

Some believe that by maintaining the “No” stance, Greece would be allowed to exit from the Eurozone and begin printing their own currency. By departing from the Euro, Greece would be able to set its own monetary policy and not be tied to the same system as countries such as Germany.

For now, Greece has a €60 daily limit on ATM withdrawals. The European Central Bank (ECB) has helped the Greek banks through the Emergency Liquidity Assistance program. As for the Greek debts, they owe €3.5 billion to the ECB on July 20. If no deal is reached by then and Greece misses the payment, it could trigger a financial crisis.

 

For more detail on the Greece referendum, BloombergView and Vox have provided coverage and analysis on the situation.