Germany and the Greek referendum

Newsletter 2015/07/06 – The First Defeat

ATHENS/BERLIN/PARIS (Own report) – Germany’s imposition of its
austerity policy suffered a first serious defeat in yesterday’s Greek
referendum. Over 61 percent of the Greek voters rejected an agreement
with the creditors that would have provided for a continuation of the
German austerity measures. This defeat is all the more serious for
Berlin, because German politicians had massively interfered in the
Greek referendum debate. The decision whether there will be new
negotiations – and if so, under what conditions – must now be taken.
Whereas many Greeks celebrated the rejection of the austerity dictate
yesterday evening, German politicians declared that it is “difficult
to imagine” new negotiations with the government of Prime Minister
Tsipras (the German Minister of the Economy, Sigmar Gabriel). Greece
is heading toward a Grexit and a “humanitarian catastrophe” (Martin
Schulz, President of the European Parliament). Paris however is
risking conflict with Berlin. Yesterday evening, the governing Parti
Socialiste (PS) took a clear stand “against the austerity measures,”
which has “shriveled Greece’s Gross Domestic Product and driven a
large number of Greeks into poverty.” Today’s meeting between the
German chancellor and the French president may produce the first


By piotrbein