Europe may yet save Greece from economic chaos but there will need to be a political earthquake in Athens first.
As Greek banks were shuttered in a desperate bid to prevent financial collapse, European leaders stuck to their position that Greece was on its own, for now.
They’re furious that the Greek government walked out of talks Friday, and then announced a few hours later that it would urge Greece to vote against a draft bailout proposal in a referendum on July 5.
The bailout offer legally expires on Tuesday, five days before the vote. The Greek government has asked for an extension — a request rejected by its creditors.
German Chancellor Angela Merkel said Greece had every right to call the referendum, but equally the other 18 members of the eurozone had every right to stick to the deadline.
“The [bailout] program runs out tomorrow at midnight, after that there is no program,” she told reporters Monday after an emergency German government meeting on Greece.
Merkel and other leaders made clear that the choice before the Greek people was really about whether Greece should keep the euro or return to the drachma.
“This is the choice,” tweeted Italian Prime Minister Matteo Renzi.
It’s unclear how Sunday’s vote will go. The left-wing government of Prime Minister Alexis Tsipras has enjoyed strong support among Greeks who have suffered years of austerity tied to previous rescue loans.
Thousands were gathering Monday evening in Athens to protest against austerity, and calling for people to vote with Tsipras and reject the bailout offer.
Equally, most Greeks tell opinion pollsters they want a deal to stay in the euro.
“A no vote will mean that Greece is saying no to Europe,” said Jean-Claude Juncker, president of the European Commission.
A “yes” vote, however, would mean repudiation of Tsipras’ negotiating position — and is likely to be followed quickly by new talks.
Merkel said European leaders were not planning to meet before Sunday’s vote, but could convene soon after.
And they would be open to talks on a new rescue should the Greek government request them.
In practice, it’s hard to see how those negotiations could happen with Tsipras, who has accused Europe of trying to blackmail and humiliate his country. But then, if he loses the referendum he may well resign.
