However, other European Union member states have refused to extend its bailout program beyond the IMF repayment deadline, June 30. This makes the future of Greece in the EU even more questionable.
The Greek parliament has voted in favor of Prime Minister Alexis Tsipras' call for a July 5 referendum on the bailout proposal laid forth by the troika of Greece's creditors in exchange for the first tranche of payment to repay the International Monetary Fund's (IMF) debt. The referendum has been approved for July 5, as announced by Tsipras.
However, as the Greek parliament approves the electorate vote, the future of Greece in the Eurozone has been looking increasingly shaky. the referendum took the country's international debt negotiators by surprise, and other European Union member states have refused to extend its bailout program past the June 30 expiry date, leaving Greece on the brink of a financial chaos.
On the streets of Greece, worried people were seeing queuing outside banks to pull out cash from dawn to dusk after Tsipras' announcement. Billions of euros have already been pulled out of the banking system in the preceding weeks.
Greece has a 1.6 billion euro debt due to the IMF on Tuesday and its bailout program expires the same day, after which it is unclear how the country might survive financially.
The referendum is set for next Sunday with the question, whether to accept proposed reforms needed to get bailout loans from other eurozone countries and the IMF. The government is advocating a rejection of the proposals. The radical left-wing leader accused the creditors of using blackmail and ultimatums against his proud but struggling people.
European officials and all Greek opposition parties except the extremist far-right Golden Dawn party called his move for a vote a foolish and rash gambit that effectively ended negotiations to keep Greece financially afloat.
The sudden move comes after five months of stalemate negotiations, with Tsipras accusing creditors of trying to strong-arm his country into taking harsh austerity measures that he says will hammer an economy already on its knees after months of creditor-demanded spending cuts and tax hikes.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}