Greece crisis

Rules Not Made to be Broken

Greece says No Source AP
The Greeks voted "no," which makes a Grexit inevitable, according to our author.
  • Why it matters

    Why it matters

    The euro zone risks losing its credibility if it keeps lowering the bar for Greece, the author argues.

  • Facts


    • Greece owes its international creditors €240 billion, the next payment of €3.5 billion is due on July 20.
    • Capital controls are in place in Greece but as the banks run out of money, further measures will be needed.
    • European leaders will meet today to try and reach a deal to keep Greece in the euro zone.
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The Greek referendum is a lesson for us all.

Nearly two-thirds of the Greek population refused the austerity and reform program demanded by the country’s international creditors. The reaction to all attempts so far to economically restructure the over-indebted country could hardly have been clearer.

The Greeks’ clear “No,” this loud call for more autonomy and against the interference of European partners has to be respected.  

Of course, the decision makes negotiations about a third bailout practically impossible. Greece is so far removed from the ideas of the other euro countries that it is hard to imagine how a Grexit can be avoided.

What Greece’s Prime Minister Alexis Tsipras hailed as a “victory of democracy” could prove to be a fatal mistake. The country’s European partners now know that Greece clearly rejects a continuation of the bailout policies pursued up to now.  

That is understandable in view of the fact that two bailout programs amounting to around €250 billion have not been able to solve the country’s crisis.  

In that respect, the creditors, especially Chancellor Angela Merkel, should also be asking themselves what mistakes have been made handling the Greek crisis over the last five years.

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