Let’s Talk: Will Greece’s gamble pay off? 129

Let's Talk


View Profile

Today’s shock announcement that the people of Greece overwhelmingly said “no” to Europe’s rescue package has put the nation in a tenuous position.

By backing Prime Minister Alexis Tsipras and rejecting the ongoing terms of the bailouts from its creditors –— the European Central Bank, the International Monetary Fund  and the European Commission — Greece has chosen a future no one can predict.

The only known factor is that more than 61 per cent of Greeks were not willing to face five years of further austerity measures.

The gamble is that the move will force creditors back to the negotiating table, where they will have to offer terms more acceptable to the Greeks in managing the massive, 240 billion euros ($A352.66 billion) debt Greece owes.

But whatever comes next, it needs to happen fast – last week, Greek banks reported they held only €500 million in cash reserves.

If Germany, along with other creditors decide to take a hard-line approach, it’s possible Greece could be booted from the EU and will experience a period of great upheaval as Greeks reintroduce the drachma.

Speaking after the results of the referendum were announced, Mr Tsipras insisted the vote did not mean a break with Europe.

He said membership of the European Union is meant to be “irreversible”, with no legal avenue to evict a country.

He told the people of Greece, “Together we have written a bright page in modern European history. We proved even in the most difficult circumstances that democracy won’t be blackmailed.”

German Chancellor Angela Merkel and French President Francois Hollande called a European summit for Tuesday. They say the Greeks’ decision must “be respected”.

Do you think Greece has made the right decision to walk away from the deal on the table in hope for a better one? 

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. I was just listening to Foxtel and they said this could plunge the world into a bigger recession than the GFC, I have no confidence with Abbott at the helm that we will be safe this time

    7 REPLY
  2. Democracy has spoken. Good luck Greece. Austerity must end if the economy is to grow.

    5 REPLY
  3. What I’m trying to work out, who is going to pay for their debt?

    5 REPLY
    • Total austerity is not the right answer, but who is paying tax in Greece. I don’t want to start a rumour, but what is the truth behind their grey economy?

    • The rich don’t pay tax. Aristotal Onassis the shipping billionaire didn’t pay tax. They own a luxury yacht anchored off shore – listed as their main residence and therefore not liable for Greek tax. Their huge mansions are supposedly not their “place of residence” The working class pay tax. The working class put aside money for their pensions – and that has been attacked.

    • My Greek sources tell me that many people avoid paying taxes so all their loopholes need to be tightened up……as ours should be. I suspect they will not be kicked out of the EEC regardless of their debt…..too costly for the other countries, as they hope Greece will, eventually, pay the debt off. Let’s hope the tourists continue to keep them afloat.

    • Nothing to do with the rich, public servants were paid ridiculous wages even if they didn’t turn up for work and offered three times the pension if they retired at fifty. Very few Greeks paid tax. The dream is over the piper must be paid.

    • Unfortunately, it is the taxes from the people of France and Germany etc who are “paying the piper” not the rich in Greece.

  4. I don’t blame them, I was reading about a brother and sister in their early 60’s, the brother lost his job, and another brother died, and the sister has always stayed home and looked after the house and both brothers. They receive no money at all from the Government, they rely on the goodwill of others to survive. Greece is in a mess and its citizens are suffering, I hope this works out for them

    1 REPLY
    • Then they’d be about the only ones in the country that weren’t getting money from the government. They had a pension age of 50 and the system was rorted left, right and centre. That’s one of the reasons the economy went down the gurgler.

  5. Very concerning. Fingers crossed situation, a bob bet each way for this decision, as far as I’m concerned.

  6. And therefore never send to know for whom the bell tolls; It tolls for thee. John Donne. In today’s economy “no country is an island” in exactly the same way.

Leave a Reply

Your email address will not be published. Required fields are marked *