Update story
Greek Referendum exposed Greek voters rejected austerity measures imposed by EU
Monitoring Desk: In a historic move, Greece became first country to defy European Union instruction over austerity campaign when Greek people said No to new EU proposed bailout. 61.31 percent of total voted polled and counted rejected EU terms for new bailout.
Eurozone emergency summit has been called on Tuesday (July 7, 2015) to review the situation after Sunday’s Greek referendum.
Meanwhile, Greek Finance Minister Yanis Varoufakis who had been heading bailout negotiations has resigned and said that his resignation will help Prime Minister Alexis Tsipras negotiate a better deal with foreign creditors
The outcome of the Greek referendum caused a sharp drop in the euro on Monday, reported RT Russia. It may be mentioned that the euro fell 1.4 percent against the US dollar to $1.0955, and 2.1 percent against the yen to 133.50 yen.
Greek government that came in power by raising slogan against constant financial bully by European Union, called referendum on Sunday and asked Greek people to decide whether the government should accept harsh economical conditions offered by EU for new financial bailout or not.
European Union leaders have strongly reacted on the decision of Greek government to hold referendum in the country—calling the referendum against the norms of EU traditions. Strongest reaction came from German Finance Minister Sigmar Gabriel who said that the results of the referendum had “torn down the last bridges on which Greece and Europe could have moved towards a compromise.”
Sigmar Gabriel criticized Greek government and said:
“Tsipras and his government are leading the Greek people on a path of bitter abandonment and hopelessness”.
There are fears that Greek and European Union may have separate political paths after this referendum because Greek referendum can instigate other weak countries of EU to follow this tradition of asking their people whether they should accept EU decision regarding financial health of their countries or not. Greek-EU contra is becoming a test case how far EU can press any country for austerity campaigns and how far a country is ready to accept EU economical decisions and designs. Greek people believe that EU bureaucracy is ballooning and eating billion of euros on their service structure and salaries while weaker EU countries are pushed to take last bread from the mouths of people.
