Greek Government Rejects European Warnings Regarding Referendum

Alexis Tsipras, the Prime Minister of Greece, rejected the European Union's warnings that any referendum regarding Greece's future in the eurozone would be detrimental. The Greek Prime Minister stated that after this referendum, negotiations with international lenders for a better and fairer agreement would continue. According to Reuters, Alexis Tsipras said in a televised speech on July 12 that a recent International Monetary Fund report indicating that without debt relief, Greece's debt payments are impossible, confirms the Greek government's stance to vote 'no' on the lenders' conditions and demands. The Greek Prime Minister criticized EU leaders, accusing them of trying to extract 'accountability' from Greece by setting deadlines. Polls show that the percentage of supporters for both 'no' and 'yes' votes is nearly equal. Alexis Tsipras stated, 'What we will decide on Sunday (July 14) is not Greece's membership in the EU or the eurozone. The issue is whether they will be able to force us to accept policies and conditions that even the lenders know have reached a deadlock. The question is whether we will accept the gradual death of the Greek economy or not.' EU leaders warned on Friday about the results of this referendum, which was announced only eight days prior and coincided with the deadlock of the last round of negotiations. Jean-Claude Juncker, President of the European Commission, and Wolfgang Schäuble, Germany's Minister of Finance, stated that contrary to the Greek Prime Minister's claims, if the result of this referendum is a 'no' victory, Greece will not achieve better conditions for repaying its debts. Juncker said in a press conference, 'If the Greeks vote 'no', the country's position will be severely weakened.' Wolfgang Schäuble told the German newspaper Bild, 'The Greeks need to make many reforms. But I already know that these negotiations will be very difficult.' Despite EU leaders stating that a 'no' vote in this referendum would likely mean Greece's exit from the eurozone and even the EU, the Greek government is gambling that European leaders will ultimately be willing to compromise rather than see Greece exit the union. The report indicates that aside from rhetorical posturing, there have been more signs of pressure from Europe on Greece in recent days. According to statistics from the reputable polling institute ALCO published on Friday, 44.8% of people support a 'no' vote, while about 43.4% support a 'yes' vote. Approximately 11% have stated they will not participate in the referendum on Sunday. Another poll conducted by the newspaper Agi shows that 43% support a 'no' vote and 42.5% support a 'yes' vote. With Greek banks closed over the past week, a cap of 60 euros for ATM withdrawals, and an economic slowdown, the outcome of the Sunday referendum could seriously impact financial aid and further borrowing to save Greece's bankrupt economy. There has not been much time for campaigning, but on Friday evening, a large rally for the 'no' vote is scheduled in front of the parliament building, where Alexis Tsipras is expected to speak. Supporters of the 'yes' vote are also set to hold a large rally at the Olympic Stadium in Athens. Alexis Tsipras had previously stated in a television program that after his request to change some of the lenders' conditions, they threatened Greece and spread rumors that the referendum would be postponed. The Greek Prime Minister said that a 'no' vote in the referendum would be a decisive step towards a better agreement that we will sign after Sunday.