Brussels, 05/07/2015 (Agence Europe) - The massive victory of the 'no' vote in the referendum held in Greece on Sunday 5 July is a victory for democracy according to the Greek government. It is a serious slap in the face for the eurozone, several representatives of which had called on the Greeks to approve the reform package on the table. In the wake of the result, the eurozone was trying to respond to an unprecedented situation.
A eurozone summit will be held on Tuesday 7 July at 6.00pm, confirmed European Council President Donald Tusk, thus responding to the call of the German, French and Belgian leaders. European Commission President Jean-Claude Juncker, who said he respected the result of the referendum, will hold a conference call with the presidents of the European Council, Eurogroup and ECB this Monday. Germany's Chancellor Angela Merkel and France's President François Hollande will take stock of the situation at a dinner in Paris the same evening. The treasury leaders of the eurozone countries, brought together within the Euro Working Group, will meet on Monday. In accordance with the procedure, a meeting of the Eurogroup will have to prepare the eurozone summit on Tuesday.
All eyes will be on the ECB. Greece has called for an increase in the ceiling of the emergency assistance (ELA), and the government is reportedly still determined to reopen the banks on Tuesday.
'Oxi' wins by over 61%. The figures will resound for years: 61.28% of the Greeks who turned out to vote rejected the proposals that the 'institutions' (Commission, ECB and IMF) had tabled, while 38.72% of the voters approved them. The turnout rate for the referendum was 62%.
For the Greek government, the 'no' has set the tone for relaunching the negotiations - which it would like to resume constructively, and as quickly as possible. It says that this rejection must not be interpreted as a 'no' to the euro. “The mandate you've given me does not call for a break with Europe, but rather gives me greater negotiating strength”, said Greece's Prime Minister Alexis Tsipras in a statement shortly after 10.00pm. Tspiras, whose position has been strengthened on the domestic level, will meet Greece's main political leaders. Aware that “there is no easy solution”, he intends to negotiate with his European partners in order to reach “an agreement with conditions of social justice, and the possibility of getting out of the vicious circle of austerity”. On the issue of the Greek debt, he gave assurances that it would be on the negotiating table in the light of the recent IMF report, according to which the eurozone will have to do more to relieve the debt burden. “There will be no new loans until the old loans have been restructured”, said Greece's finance minister, Yanis Varoufakis. In Greece, the referendum shock wave claimed its first political victim with the resignation of the New Democracy party leader Antonis Samaras.
While the Greek government thinks an agreement is possible within 48 hours, certain statements from Greece's creditor countries are pessimistic. The president of the Eurogroup, Jeroen Dijsselbloem, described the referendum result as “very regrettable for the future of Greece”. In his view, “difficult” reforms are “unavoidable” to put the Greek economy back on the rails. He said he was awaiting the “initatives” of the Greek authorities, which will be discussed at an extraordinary Eurogroup meeting on Tuesday 7 July.
Germany's Vice-Chancellor Sigmar Gabriel told German newspaper Tagesspiegel that the resumption of negotiations was hard to imagine and that Greece had burned the last bridge with which a compromise could have been possible. “We must accept the outcome of the referendum. It's mainly up to Greece to decide what conclusions to draw. The ball is in Athens' court”, said Germany's foreign minister, Frank-Walter Steinmeier. Belgium's Prime Minister Charles Michel also believed it was up to Greece to make proposals.
“I'm disappointed with what now seems to be the final result of the referendum”, tweeted Slovakia's finance minster, Peter Kazimir. “The rejection of reforms by Greece cannot mean that they will get the money easier (…) The nightmare of the 'euro-architects' that a country could leave the club seems like a realistic scenario after Greece voted 'no' today”, he added. “While respecting the outcome of the Greek referendum, it's clear that there will be consequences for all, unfortunately the worse for Greek people”, said Latvia's foreign minister, Edgars Rinkevics. Malta's Prime Minister Joseph Muscat acknowledged that Greece had wanted to protect the interests of its people, but he expected the populations of the creditor states to ask their leaders to do the same.
Before the results of the referendum, Estonia's Prime Minister Taavi Roivas, believed that a 'no' would mean a return to the drachma “and more trouble”. Tusk told European news service Politico that it might be necessary to become used to living with a eurozone member country that is bankrupt. He gave assurances that the priority was to keep the eurozone together.
Schulz speaks of humanitarian plan for Greece. In a serious tone of voice, European Parliament President Martin Schulz spoke of a “difficult day”. Tsipras' promise that a 'no' in the referendum would enable a better deal for Greece in the negotiations with its creditors “is not true, in my view”, Schulz said, calling on the Greek government to make new proposals able convince the other members of the eurozone. In Schulz' opinion, the eurozone summit on Tuesday will have to discuss “a humanitarian plan” for the country as “the ordinary citizens, pensioners, sick people and children should not have to pay the price of the situation in which the Greek government has put the country”. Schulz had been strongly criticised by the Greens/EFA and GUE/NGL groups for his partisan attitude ahead of the referendum (see EUROPE 11350). (Elodie Lamer with Mathieu Bion)