This is a good read from the FT. Check it out!
via Angela Merkel takes revenge on Greek prime minister – FT.com.
Personally, I would expect more Greeks to swing to ‘yes’ as pressures mount. Greece still wants to be part of the Euro and the EU.
There’s still a deal there (as opposed to a Grexit) but it will take longer to resolve and fears will probably mount.
Greeks have perversely decided to vote ‘no’, presumably with the expectation that Frau Merkel would relent and pay up anyway, or perhaps from a feeling of euphoria and the spirit of King Leonidas, the Spartan, who chose death rather than Persian tyranny under Xerxes.
Either way any bailout needs to be very small, so as not to encourage others.
Sadly, I think, as Dr Alf does, that brinkmanship has gone too far because the ‘no vote’ has more to do with backing Tsipras because they are Greek, than any logical understanding of the position of the rest of us, who are going to pay and go on paying for their collective myopia and obduracy.
Meanwhile, the hand of the UK is perversely strengthened in its negotiations over EU reform, provided David Cameron for once does not throw away all his cards, so in that sense some good can come out of this debacle. This is because Germany will not want the UK, with its budget contribution, to leave the EU.
Greece needs to leave the Eurozone and left to stew for a bit. Then after the “demob happy” Greeks let reality sink in, the EU can step in with a new offer, contingent upon reform and security for all debts. If that is refused, then the EU should walk away but provide ring fenced aid to children and the vulnerable.