Greece lurched into uncharted territory and an uncertain future in Europe’s common currency Sunday after voters overwhelmingly rejected demands by international creditors for more austerity measures in exchange for a bailout of its bankrupt economy.
Results showed about 61% voted “no,” compared with 39% for “yes,” with 100% of the votes counted. The referendum—Greece’s first in more than four decades—came amid severe restrictions on financial transactions in the country, imposed last week to stem a bank run that accelerated after the vote was called, AP reported.
Thousands of jubilant government supporters celebrated in Syntagma Square in front of the parliament, waving Greek flags and chanting “No, no, no!”
Early trading on Asian markets indicated investors were alarmed, as stock indexes fell.
It was a decisive victory for Prime Minister Alexis Tsipras, who had gambled the future of his 5-month-old coalition government—and his country—in an all-or-nothing game of brinkmanship with Greece’s creditors from other European countries that use the euro currency, the International Monetary Fund and the European Central Bank.
“Today we celebrate the victory of democracy,” Tsipras said in a televised address to the nation, describing Sunday as “a bright day in the history of Europe. We proved even in the most difficult circumstances that democracy won’t be blackmailed,” he said.
Strengthens His Grip
Tsipras called the referendum last weekend, saying a “no” vote would strengthen his hand to negotiate a better deal for his country. His government has said it believes it would be possible to conclude a deal with creditors within 48 hours.
But European officials and most of Greece’s opposition parties painted the referendum as one of whether the country kept using the euro currency—even though that was not the convoluted question asked on the ballot. Opinion polls Friday showed that 74% or more want their country to remain in the euro.
Greece’s outspoken finance minister resigned, hours after voters backed his call to reject creditors’ demands for more austerity in a referendum.
Yanis Varoufakis said it was felt his departure would be helpful in finding a solution to the country’s debt crisis.
Eurozone finance ministers, with whom he repeatedly clashed, had wanted him removed, Varoufakis explained.
Reactions
How European officials react to the referendum result will be critical for the country, and a eurozone summit was called for Tuesday evening to discuss the situation.
German Chancellor Angela Merkel and French President Francois Hollande spoke to each other Sunday night and agreed “that the vote of the Greek people must be respected,” Merkel’s office said.
The referendum result was “very regrettable for the future of Greece,” said Jeroen Dijsselbloem, head of the eurozone finance ministers’ meeting known as the Eurogroup, which also will meet Tuesday.
Dijsselbloem, who is finance minister for the Netherlands, had been a steadfast opponent of Greece as it sought better conditions during five months of bailout talks.
“For recovery of the Greek economy, difficult measures and reforms are inevitable,” he said. “We will now wait for the initiatives of the Greek authorities.”
Sigmar Gabriel, Germany’s vice chancellor and economic minister, told a German newspaper the Greek government was leading its people “onto a path of bitter austerity and hopelessness.”
Tsipras has “torn down the last bridges, across which Europe and Greece could move toward a compromise,” Gabriel told the daily Tagesspiegel. “By saying ‘no’ to the eurozone’s rules, as is reflected in the majority ‘no’ vote, it’s difficult to imagine negotiations over an aid package for billions.”
Belgian Finance Minister Johan Van Overtveldt was somewhat softer in his reaction, saying a “no” result “complicates matters,” but that the door was open to resume talks immediately.
“What we certainly don’t want to do is to take decisions that will threaten the monetary union,” he told Belgium’s VRT. “Within that framework we can start talks again with the Greek government, literally, within hours.
