The Greek no

On Sunday, the Greek people voted against austerity. The vote came against the wishes of Greece’s international lenders and the European Union (EU). The EU threatened that a ‘no’ vote meant that Greece had decided to leave both the euro and the EU itself. Major European leaders felt that fear would win. What they did not know was that the Greek people have left fear far behind. As the results came out, more than 60 percent on the voters had decided to vote no. The victory was perhaps sweeter than what left-wing alliance Syriza and Greek Prime Minister Alexis Tsipras had anticipated. The ramifications of the referendum on a country facing a severe economic and fiscal crisis have yet to have been fully exposed. Some have already been felt inside Greece. Greece’s finance minister Yanis Varoufakis, known for being particularly harsh towards international creditors, has resigned. The leader of the Greek opposition has resigned too. The finance minister’s resignation is going to be critical in indicating what the Greek government intends to do. With Varoufakis stepping away, the Greek government is expected to put a softer – maybe more palatable – figure in his place.
The aim of the referendum was not to step away from the EU and euro, but to put pressure on Greece’s international creditors. Greece still needs emergency loan assistance from the European Central Bank to keep its banks afloat. With the ECB set to decide on the emergency loan, these few days are critical for the future of Greece and the EU. The Greek government also reconstituted its negotiating team for another round of talks with its creditors. On Monday, the French finance minister said that debt relief was ‘not taboo’. The French appear to be willing to let democracy dictate the terms of the Greek bailout, but Germany seems to be standing its ground on the need for austerity. Syriza’s plan seems simple: put pressure on the EU and its other creditors to get rid of billions of euros of the country’s debt. In terms of a pressure strategy, the gamble on the Greek public has paid off. Now, it is time for the Greek government to return to the negotiating table. It is not certain what will happen at the talks. However, it appears that Syriza is willing to accept a compromise. What is also clear is that any compromise will not be enough to end Greece’s financial problems. There needs to be a fallback plan in place. As of now, Syriza has not made any such plan public. Whatever happens with Greece, the referendum will be remembered for the brave resilience of the Greek people who are ready to face uncertainty over the certainty of a crippled future lived on terms set by the international financial establishment.