Greek Referendum: Euro Crisis Explodes Into Dramatic Climax
By Jerome Roos in Roarmag - Tsipras’ spectacular decision late on Friday to fly back to Athens and put the Eurogroup’s final bailout offer to a referendum — with the government advising voters to reject the deal — has stunned friends and foes alike.
Now, with depositors lining up at ATMs to withdraw cash, the Eurogroup refusing to extend the current bailout program, the ECB capping its emergency liquidity assistance for Greek banks, and Greece set to miss a €1.5 billion IMF payment on Tuesday, the long-awaited endgame is finally upon us. After five long and exhausting years, the euro crisis has exploded into its dramatic climax.
Those who now lambast the Greek government for its supposed “recklessness” in calling the referendum are profoundly mistaken. Yes, as I have argued many times before, Tsipras’ and Varoufakis’ belief that they could somehow extract an “honorable compromise” from the creditors was always extremely naive.