Despite the IMF gaffe revealing that the Greek debt load is not only unsustainable but will require substantial haircuts to be viable, Greek Prime Minister Tsipras and Finance Minister Varoufakis are busy drumming up support for the “no” vote in the referendum on Sunday. It means no to more austerity, no to more budget cuts, and the possibility of a fresh start in negotiations with creditors. This referendum comes amid increasing anger in the Greek streets as depositors line up for hours to withdraw a paltry EUR 60 per day. Stunning images of pensioners clamoring at open branches for EUR 120 shows that the financial repression continues to hurt those most affected by the bad decision-making of previous Greek governments. However, with the chance to rid themselves of lingering problems, the Greeks are not supporting the “no” vote as much as they reasonably should to avoid an even greater downturn in the economy. With the “yes” vote for Europe currently polling with a very narrow lead, Syriza policymakers have their work cut out ahead of Sunday’s vote.
The upcoming vote is of critical importance not just for Greece, but the broader Euro Area as it seeks to reclaim sovereignty from the technocratic elements running the show from Brussels. The overwhelming lack of compassion illustrated by such individuals as Jean Claude Juncker and Jeroen Djisselbloem show that the idea of democracy is lost on the European Commission as they seek to assert greater control over the budgets and governments of member states. The creditors are hoping for a yes vote as this will give them the upper hand in displacing a Greek Government that they find hostile to their ambitious plans to further integrate Europe under a common cause. However, other nations and political parties are carefully taking note of the negotiations as the IMF gaffe could see Spain, Italy, and Portugal potentially apply for haircuts to equally onerous conditions applied to their own bailouts. Anti-euro support continues to grow and the current standoff in Greece is only furthering that momentum as time carries on.
Initial Greek Polls Expecting Yes
Andamento del mercato - 03/07/2015