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Greece is moving towards a referendum for or against the euro

08 March 2015 / 16:03:26  GRReporter
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In an interview with Corriere della Serra, just a day before the decisive Eurogroup meeting in Brussels, Finance Minister Yannis Varoufakis stated that even a referendum might be held in the case that the partners rejected Greece’s proposals.

"As I told the prime minister, we are not glued to our seats. We can go to the polls, we can hold a referendum," said Varoufakis. The newspaper adds that the referendum may be about whether the country should stay in the eurozone.

Varoufakis believes that the government could survive a rift with Brussels because of the strong link it has built with Greek citizens and the honesty in their relations.

Varoufakis also hints that pressure is being applied on the Greek government. He defines the debate over Grexit in Europe as ‘toxic’; when this talk will end is ‘someone's political choice,’ he said without specifying who that someone was. The minister adds that bandying about the scenario of the country's exit from the eurozone spooks investors.

Varoufakis seems rather annoyed with the attitude of the European Central Bank towards Greece: he points out that the ECB has authorized Greece’s previous ‘conservative’ governments to raise the limit on treasury bills emissions whereas now it denies Athens the right to do so. He believes the ECB hampers Greece’s flexibility.

Varoufakis explains that Greece does not want a new loan from creditors but a ‘development agreement’ with three main points: a review of the primary budget surplus targets, a reasonable replacement of debt with new growth-pegged bonds, and a pan-European investment plan funded through bonds issued by the European Investment Bank.

The Minister admits that until now the Eurogroup has only had respondents with silence to the Greek plan, and goes on to explain that Europe is "a big ship that needs time to change its course." Varoufakis adds that when changes come from a government of the left, this causes concern in European circles.

The article reminds that, in an interview for the daily Agora, Panos Kammenos, defence minister and leader of SYRIZA’s coalition partner, the Independent Greeks, also claimed that a referendum is possible if creditors intensify their pressure and "challenge the desire of the Greek people."

Kammenos emphasised that the Greek government is not necessarily headed towards a referendum, but the Germans "must be convinced that there is democracy", and "suzerainty over Greece is over."

The leader of the Independent Greeks also mentions the attempts to revamp or torpedo the government coalition. He claims that, at a cabinet meeting, Alexis Tsipras has shown a document from Deutsche Bank calling for the overthrow of the government, and referring to its obligation to cooperate with Potami. Kammenos also quotes Deputy Prime Minister Yannis Dragasakis, who said that the German ambassador had offered him to coalesce with Potami or PASOK rather than with the Independent Greeks.

Kammenos himself excludes the possibility of cooperation with PASOK or Potami.

Meanwhile, Varoufakis’ indications of a possible referendum before Corriere della Sera has already stirred up a strong response.

MP Dimitris Vitsas, until recently secretary of SYRIZA’s Central Committee, distanced himself from the finance minister’s words in an interview for Skai TV. "We will not vote in a referendum over Greece staying in the EU and the Eurozone. This argument might only be used in negotiations," he said.

"If the government proceeds with a referendum, Greece will be shipwrecked," said Dora Bakoyannis. "Whom are we lying to? If Greece votes for the euro or the drachma, then the Greeks will bear the consequences," Bakoyannis said. She added that should the Greeks choose the drachma, the years ahead will be ‘infernal’. She believes the multiple interviews of the finance minister are an embarrassment for the country. Bakoyannis stressed that Greece would not receive any financial support without an evaluation of its programme, and the Greek economy cannot be left in the lethargy, in which it lies now.

Tags: Yannis Varoufakis interview referendum euro drachma Eurozone Panos Kamenos reactions
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