The Greek people on Sunday gave an overwhelming “No” in the referendum on a rescue package from creditors, dramatically increasing the chance for the country to crash out of the eurozone. Greece
This is a scenario least desired by the eurozone, which is intended to be permanent and strong when it was created 15 years ago.

Jubilant and cheerful Greeks were happy to finally have a vent for all the bitterness of five years of austerity as they went to streets to celebrate the result.

However, few people were really prepared for a new currency at worst as no more emergency funding from the European Central Bank (ECB) means their banks could run out of euro cash within days.
Since July 1, Greece is already in arrears to the International Monetary Fund. It is already teetering on the brink of bankruptcy.

Officials and analysts in Greece and abroad warned that even if “YES” wins, banks may not reopen this week, ATMs will run out of cash and Greek citizens will suffer more pain before any deal is reached and liquidity is restored with lenders’ help.

Greek Prime Minister Alexis Tsipras, who called the referendum a week ago, has assured voters Greece will secure a deal by Tuesday on better terms to unlock further vital funding to stay afloat in the eurozone.
His government has promised that the banks, which closed last Monday after the ECB cut off emergency liquidity aid, will reopen on Tuesday. Skepticism was widespread even within the country.
“If the premier will not achieve a deal, as he pledged, by Tuesday, the country faces a great tragedy,” said former Speaker of Parliament Vangelis Meimarakis.

There are no upbeat comments from the major lenders either. There was little chance for reaching a compromise with the government in Athens following the “No”-vote, German Vice Chancellor and Minister for Economic Affairs and Energy Sigmar Gabriel told newspaper Tagesspiegel.

“Negotiations over programs worth billions are hardly conceivable…with view of a rejection of the rules of the eurozone,” noted Gabriel.

“This result is very regrettable for the future of Greece,” Euro group President Jeroen Dijsselbloem said in a statement.

“We will now wait for the initiatives of the Greek authorities. The Eurogroup will discuss the state of play on Tuesday 7 July,” he added.

Some officials like Axel Schaefer, Merkel’s ruling partner in her coalition government argued that the situation was too serious to be left to finance ministers. European Council President Donald Tusk has called for another summit on Greek debt issue.

Pessimism was found also with European Parliament President Martin Schulz. A “NO” vote would not entail a better deal as Prime Minister Tsipras has promised to his people, he said, “We have difficult situation.”
Schulz said that an immediate renegotiation is “necessary” and “possible” but it depends on Greek proposals.
He also said that it seems “very difficult and dangerous” that the Greek banks could reopen on Monday and the money would be available till Tuesday.

German Chancellor Angela Merkel and French President Francois Hollande are due to meet on Monday in Paris to access the outcome of referendum.

Leaders of the European Commission, the European Council and Eurogroup have decided to have a conference call on Monday morning ahead of the euro summit on Tuesday. Enditem



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