Prime Minister Alexis Tsipras had called for a referendum in late June, thereby rejecting the bailout proposal put forth by the country's troika of creditors . In the referendum, Greece was supposed to decide whether it will accept austerity in exchange of financial help, or not.
The Greek referendum has begun.
Prime Minister Alexis Tsipras had called for a referendum in late June, thereby rejecting the bailout proposal put forth by the country's troika of creditors -- the European Central Bank, International Monetary Fund, European Commission. In the referendum, Greece was supposed to decide whether it will accept austerity in exchange of financial help, or not. However, what was initially supposed to be a question of deciding the bailout program's fate, has now essentially become about the fate of the country's membership in the Eurozone.
Let's start with the basics though.
What is a referendum?
A referendum is a ballot question or a vote for the entire electorate of a country on a particular proposal.
When Tsipras called for a referendum on the bailout program, he put the fate of the Greece crisis in the hands of the 9.9 million Greeks who are eligible to vote. Tsipras had rallied into power in the January elections, promising anti-austerity, and the bailout program sought the exact opposite. He'd vowed to uphold the promise made to his people, and then tossed the ball in their court.
What's the problem?
When the June 30 deadline came and swished by, Greece did not just fail to repay its 1.7 billion euro debt installment to the IMF, but it also lost the option of a bailout program, which was due to expire on the same day. Now, the troika will at least take months to come up with a new bailout plan. What is rather strange is that today, when Greece is voting, it is deciding on a question that is is no longer valid.
The referendum question:
The confusion
It's simple. You cannot decide between two cars if you have been asked to pick between apples and oranges. It is very necessary to ask the right question, to get the right answer. However, Greeks, at the mercy of multiple forces -- its own government, the opposition, its creditors, the European Union – will be voting on a question that now means a yes or a no to continue in the European Union. There is now widespread confusion in the country, which is evident by the number of people in the yes or the no camp rapidly changing, as indicated by the pre-poll surveys.
The Alexis Tsipras-led ruling party's stance
Alexis Tsipras stood his ground on his anti-austerity stance, and called the bailout program in exchange of austerity measures “blackmail” and a “humiliation of all Greek people'. Tsipras has been urging the people to vote 'No' in the referendum, rejecting the austerity measures that the creditors have asked for. The outcome of the referendum today will not only decide the fate of Greece in the European Union, but it will also of the Tsipras-led ruling party, Syriza. Tsipras has already threatened that he will not stay in office to oversee more cuts if Greece votes 'yes'. Joining him on Saturday was Finance Minister Yanis Varoufakis, who also said that he will throw in the towel if Greece now decides to say yes to austerity.
The opposition party stance
When Tsipras called for a referendum, opposition party PASOK's leader Fofi Genimmata had said Tsipras was “unable to take responsible decisions, he ought to resign."
The centrist To Potami party's leader Stavros Theodorakis said “Tsipras and independent Greeks leader Panos Kammenos decided to lead the lobby of the drachma, to take the country out of the European Union and push it over the cliff. We will fight together for a strong Greece in the heart of Europe."
Former prime minister Antonis Samaras said, "Mr. Tsipras today leads the country to a referendum with a the ultimate question being a yes or no to Europe and he proposes a rift with all our partners and an exit from the euro," according to this Reuters report.
Since then, there have been strife debates about Syriza's early exit, with the possibility of an election in August, which will throw up a plethora of new troubles as the country struggles for funds for everyday needs under a bank lockdown and capital controls. As the country goes to vote today, To Potami's Theodorakis said that his party was proposing a Unity government, including Syriza, and he hoped that Tsipras “will behave responsibly and will not make the next fatal mistake of resorting to elections in August".
The NAI 'Yes' Camp
The ECB, EU, IMF, Eurozone countries apart from Greece, and a propotion of the Greek populationof are the ones who make up the NAI or the 'yes' camp, urging the electorate to vote in acceptance of the austerity measures to strike a deal with the creditors.
The ECB has said that will loosen funding if the country votes yes. EU leaders have been urging the people to vote 'yes'. French President Francois Hollande said that “...if we have to wait for a referendum, there is always a risk...that we would enter a period of turmoil and enter into the unknown. It's better to be sure than to leap into the void.
The OXI 'No' Camp
The Tsipras-led Syriza government and a proportion of the Greek population makes up the OXI or the 'no' camp. A 'No' vote will mean that the proposal of austerity in exchange of financial assistance has been rejected. Tsipras has been urging the Greeks to vote 'OXI/NO' to stand "against those who terrorise you”.
The entire country has been divided into 'Yes' and 'No' rallies for the past week. While Tsipras' voice echoes in the thousands of 'No'-sayers out in the streets, Beethoven's Ole to Joy, also European Union's anthem is on the lips of the 'Yes' campers.
Greece has been painted with 'NAI' and 'OXI' in the days leading up to the referendum.
The 'No' rally's numbers were presumed to be pretty high when the referendum was announced. However, pre-vote surveys leading up to the referendum have over time revealed that 'Yes' and 'No' camps are brushing shoulders, and a 'Yes' outcome of the vote is now not deemed unlikely. The outcome might even be very close, with either side turning out to be the majority by a very small margin.
The voting is now underway, and will go on till 7pm Greece time (930pm Indian time), and an outcome is expected by 9pm (1130pm Indian time).
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