Greeks are voting Sunday on their future in Europe, putting the eurozone to its biggest test yet.
After years of living on borrowed money and paying the price with savage austerity, Greeks are effectively choosing between more of the same or for a rupture with Europe that could spell disaster.
Voters are being asked to give their verdict on a draft financial rescue the Greek government has rejected, and Europe has allowed to lapse.
But the referendum is about much more than that.
Prime Minister Alexis Tsipras urged Greeks to vote “no” to strengthen his hand in talks with creditors. He wants a bigger bailout with less painful terms, and a chunk of debt canceled.
But European leaders say a “no” vote would destroy the basis for talks, and put Greece on a fast-track out of the euro. The damage to the country would be huge.
A “yes” vote, they say, could allow negotiations to resume, but Europe and the International Monetary Fund may demand even tougher conditions for more cash.
The split opinion on what a “no” result would mean for Greece is creating confusion. While more than 70% of voters believe Greece should stay in the euro “no matter what,” latest opinion polls suggest the result of the referendum — due after 2 pm ET Sunday — is too close to call.
It’s an awful choice, and one that has split Greece down the middle.
Exhausted by years of cuts to wages and pensions, many Greeks say they’ve had enough. They would rather reclaim control by leaving the eurozone and returning to the drachma.
The huge devaluation and impoverishment that implies terrifies others. They want Greece to keep the euro, and stay firmly rooted in the European Union, even if it means greater sacrifices.
Either way, something needs to change fast.
Greece is on the brink of going bust, and the economy is gradually grinding to a halt. Its credit lines with the IMF and Europe have collapsed.
Banks have been shut for a week, and ATM withdrawals are limited to 60 euros a day. In practice, a shortage of 20 euro notes means some people are only able to get their hands on 50 euros.
The banks won’t be able to reopen on Tuesday as scheduled unless the European Central Bank resumes emergency lending — unthinkable without an unequivocal commitment from the Greek government to reform.
Some essential services are starting to feel the pinch, too.
Dr. Theo Giannaros, head of the Elpis hospital in Athens, told CNN that supplies of medicines and basic foodstuffs were running low.
The prospect of a failing state in southeastern Europe alarms policymakers from Brussels to Washington. Greece is a member of NATO, but has been flirting with Russia. And it is the gateway to Europe for many migrants fleeing war, terror and poverty in the Middle East and Africa.
— Isa Soares and Zahra Ullah in Athens contributed to this article.
