After months of acrimonious negotiations, and despite a significant rapprochement between their position and their creditors’, the Greek coalition government has unexpectedly stopped negotiation discussions in their tracks, announcing a snap referendum for Sunday, July 5th, over the proposed deal with the EU.

It’s a puzzling move. The Greek government’s own proposal to creditors had included 8 Billion Euros in extra measures — eight times the amount agreed to by the previous government in December. Positions between the two parties seemed small. After bruising, protracted negotiations a deal seemed to be on the cards. The Greek side hadn’t intimated a referendum might be needed, and, even if it were, it would have had to happen on June 29th at the latest, since the current bailout program was due to expire on June 30th.

* * *

The Greek referendum isn’t just about the deal or even the Euro. It’s about the stability of Europe, which has been endangered by irresponsible politicking. Yet the political response in the EU and in Greece may forestall disaster, provided that Greek voters choose wisely. A strong “yes” vote, presumably accompanied by a government change in Greece, could pave the way for shifting attention from the symptoms of the crisis to its underlying causes, showing that Europe can act as a real Union. But obtaining a strong “yes” vote requires that voters get both a clear articulation of what the referendum is about and a week of patience from the creditors. I can only hope the voters get what they need. The consequences of a “no” vote are too awful to contemplate.

Read original article


Tags: