Counting is underway in Greece after a referendum on Sunday that could determine the country’s future in Europe.
Voters were asked whether to accept the latest offer of financial help from its creditors: Europe and the International Monetary Fund. Greek Prime Minister Alexis Tsipras urged people to vote “no” because he hopes to strike a better deal.
Without more money from somewhere, economic chaos in Greece could become a catastrophe, and the country may have to leave the euro.
With nearly half of the votes counted, the “no” campaign had a clear lead: 61% to 39%.
European leaders said last week that a “no” vote would destroy the basis for talks, and put Greece on a fast-track out of the eurozone.
But the Greek government clearly intends to ask Europe for more cash.
An official told CNN Greece would seek new talks, and was asking the European Central Bank for help so the country’s banks can reopen after a six-day shutdown.
It’s unclear how those requests will be received. A new bailout could mean even harsher austerity than the offer Greece appears to have rejected.
German Chancellor Angela Merkel and French President Francois Hollande are due to meet Monday evening in Paris to discuss the implications of the referendum.
The European Central Bank will also meet to discuss the crisis.
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 ECB resumes emergency lending — and that appears 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.
