Sunday, July 5, 2015

THE PRAIRIE EDITOR: Early results Indicate Greek "NO" vote landslide [UPDATED]

With about 25% of the vote counted in Greece, opponents of the European Union
(EU) creditors offer of a "bailout" of Greek debt appear to have won with about
60% of the vote. This outcome was urged by the current Greek government. The
consequences of this vote are not clear. It could lead to the exit of Greece from
the EU and the Eurozone, and would be the first national withdrawal of a member
country. It could also result in an about-face of the creditors of Greek debt, and a
quick temporary resolution of the crisis, but that would also require the approval
of several major EU governments, most notably Germany, which have apppeared
resolved not to alter the creditors' offer to Greece, and to see Greece exit from
the Eurozone. EU stock markets are expected to fall sharply on Monday because
of the Greek vote results.


Now with virtually all votes counted, 61% of Greek voters have rejected the
proposed conditions of the bailout of the Greek government debt. Although a
majority of the same voters who rejcted the proposed deal also want to remain
in the Eurozone using its euro as its currency, this might not be possible.
Greek Prime Minister Tsipiras urged his nation's voters to vote "no" with the
expectation he could get a better deal from the nation's creditors, but Germany,
the dominant economy in the EU supported the original deal, and its leaders
have suggested that the only way out now is for Greece to exit the Eurozone.
July 20 is the next deadline for debt payment, and the coming several days might
determine the future of the EU.

Copyright (c) 2015 by Barry Casselman. All rights reserved.

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