Greek Economic Crisis: What Next?
An FTI Consulting London and Brussels Analysis
Yesterday evening, the people of Greece delivered a crushing 61.3% to 38.7% “no” vote in a referendum on whether to accept the terms of an international bailout submitted by the European Commission, the European Central Bank and International Monetary Fund.
As Asian markets began to open this morning, the Euro had already fallen 0.4% against the dollar and 0.5% against the pound - to an exchange rate of 1.41 to Sterling.
Reaction in Athens
Following a week of campaigning around a referendum that has divided and torn the fabric of Greek society, the country’s far-left Prime Minister Alexis Tsipras hailed the “brave decisions of the Greek people” and called for unity. Tsipras described the result of the referendum as “a shining light in European history”, adding that his “government’s negotiating position is strengthened” following the result of the referendum and reiterating the Greek government’s call for a deal that is “sustainable” and “breaks the vicious cycle of austerity.”
Tsipras further stated that the “ECB understands the economic and humanitarian situation in Greece”. He also emphasised strongly that the issue of Greece’s debt will be on the negotiating table as of tomorrow following the publication of the IMF’s report (EU capitals had been pressuring a deferral of publication until after the referendum date).
According to Tsipras, “Greece will return to the negotiating table” during the course of today in order to find an alternative solution to the country’s economic woes. In an effort to convey a spirit of national unity, Tsipras has called a meeting of all political leaders to take place later today, in which he will outline the government’s plans and listen to other parties’ suggestions and concerns.