By Debbie Papadakis

 

debbiedepapadakis@yahoo.com

The referendum in Greece saw results, with a unanimous land-slide vote of 61% of the Greek people voting ‘no’ in comparison to 38% ‘yes’ vote. These results were unexpected, however they did have a cause waves in the political world. The results gave Prime minister Mr. Alexis Tsipras the mandate that he sought. The question is how will the creditors react to this?

Wilbur Ross of WL Ross and Co Chairman CEO expected a ‘yes’ vote but saw the ‘no’ vote as coming out of the blue. After having poured money into Greece through the banking systems, he believes that with the current ‘ pension systems and no intention of reducing the expenditures to military defense things look difficult.’ The US is expected to benefit with gold is to rise after experiencing a slump since 1998 and is backing the dollar in the light of the referendum results in Greece.

Greece has no intentions of leaving the European Union , however it has 48 hours to meet with Europeans counterparts of the IMF were they need to sit at the tables to negotiate reaching a swift decision . This will affect the European stock exchange. The ECB is in a tight spot weather they will be supplying the banks. The issue of seeing Greece with a dual currency is also speculated but not favored in Europe. One thing for sure is that the Greek Crisis will not be taken slightly. Europe will see its Euro losing strengthened as investors will turn to stronger currencies. The Yen will strengthen, the Pound will be strengthened. Surely, the bargaining side of negotiations are in Greece’s favor as it has strengthen its position in continuing the talks and forcing less austere measures that would lighten the load for the Greek people.

The banks are expected to open their doors on Tuesday. It is expected the EU will also be sending a ‘Euro-life line’ until negotiation reach a decision. German Chancellor Angela. Merkle is to meet with her French President Francois Hollande on Tuesday after having spoken on Sunday night and agreed “that the vote of the Greek people must be respected”. While, Mr. Jeroen Dijsselbloem the Financial Minister of the Netherlands said , “The result is very regrettable for Greece.”

He is also to meet with the Euro-Group on Tuesday.”For recovery in the Greek economy , difficult measures and reforms are inevitable, ”he said “we will now wait for the initiatives of the Greek authorities.” Further on that point in light of the referendum results, the vice chancellor and economic minister Mr. Sigmar Gabriel told the German press that” the Greek government was leading its people onto a path of bitter austerity and hopelessness. ” Stating that the Greek Prime minister has “torn down the last bridges across which Europe and Greece could move towards a compromise,” said Gabriel. In other words that Greece should not expect concessions from Germany.

“On the 25th January the SYRIZA government were voted in with a mandate against austerity and today the ‘no’ vote further strengthened the mandate” the Finance Minister Mr. Yanis Varoufakis said. This would strengthen their position for negotiations seeking viable solutions the economic crisis.”Today we celebrate the victory of Democracy,” Tsipras said in his televised address to the Greek People and further added that this Sunday was as “a bright day in the history of Europe.”

The setting of the sun brought the results of the referendum and the official resignation of the New Democracy Party’s leader Mr. Antonios Samaras. Many criticized his approach reminded voters of political campaigns of the past. The young voters were not pleased. Though European officials and most of the opposition parties ‘presented the referendum as one whether the country kept using the euro currency- although that was not the issue on the ballot . Furthermore, opinion polls saw 74% or more want their country to remain in the euro as shown by the media. Reality showed unexpected results.

With the dawning of a new day and awaiting the Summit on Tuesday of European leaders, Sunday July 5 surely has seen Greece having a long way to go before seeing light at the end of the tunnel.