Greece’s government may resign

Advanced Search

The story appears on

Page A11

July 3, 2015

GET this page in PDF

Free for subscribers

View shopping cart

Greece’s government may resign

Source: AFP | July 3, 2015, Friday |

Print Edition

GREECE’S radical left government said yesterday that it may resign if it fails to win a referendum that could decide the country’s financial future.

Greek Finance Minister Yanis Varoufakis said the government “may very well” quit if the public went against it in Sunday’s plebiscite and voted for more austerity in return for international bailout funds.

“We are on a war footing” to ensure the rushed referendum happens on time, Varoufakis added in the radio interview.

The world’s financial markets and Greece’s creditors — the European Commission, European Central Bank and International Monetary Fund — are stepping back after days of dizzying drama to watch the outcome.

But European chiefs warned the situation was deteriorating and what could emerge after the vote remained unclear.

“The situation is only getting worse, due to the Greek government’s behavior,” said Jeroen Dijsselbloem, Dutch finance minister and head of the Eurogroup of eurozone finance ministers.

“In case of a ‘No,’ Greece’s situation will become exceptionally difficult,” he told Dutch lawmakers.

Such a result would plunge Greece and the eurozone “into the unknown,” French President Francois Hollande said on an African visit.

Ordinary Greeks are divided over which way to vote and even what the referendum is about.

Would a “No” sought by the government prevent yet more grinding austerity?

Or, as European Union leaders warn, would it send the country crashing out of the eurozone?

The Greek government led by Prime Minister Alexis Tsipras believes rejecting the bailout conditions would strengthen its hand in negotiations with creditors.

Orange posters urging a “No” vote line Athens streets, the word “OXI” (no in Greek) stamped in large black letters.

But support for the “No” camp has sharply slid this week as Greeks struggled under capital controls reducing ATM withdrawals to 60 euros (US$67) a day.

The government’s failure on Tuesday to make a 1.5-billion-euro loan repayment to the IMF has also focused minds. Athens is now in danger of failing in arrears to the ECB if it also fails to pay 3.5 billion euros on July 20.

“I was going to vote ‘No’ because I think the Greek people are being treated with contempt. But Tsipras has made the situation so much worse, it’s his fault the banks are closed,” said shop assistant Suzanna Alizoti.

Tsipras’s call for a “No” has split the ruling coalition, with members of partner party Independent Greeks rebelling.

One of its lawmakers, Constantin Damavolitis, was expelled from the coalition benches for calling for a “Yes” vote.

“The day after the referendum, we will be united,” Tsipras promised in a quick briefing to journalists after meeting Independent Greeks party chief Panos Kammenos, who is defense minister.

But Varoufakis said in his interview with Australian public radio network ABC that a “Yes” result could see the government handing over to a caretaker administration.

“Yes, we may very well do that,” he said.

Finance

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Greece’s government may resign

Email this to your friend