Greece’s participation within the currency of the euro is looking more precarious by the hour, let alone the day. Nothing has come from months of European negotiations and, today, police in central Athens were forced to use tear-gas on demonstrators. The people of Greece have no access to regular banking as the banks are shut. ATMs are limiting cash withdrawals to only 60 euros per account per day. Even the Athens Stock exchange has closed its doors. After the now-missed June 30 deadline for loan repayment, capital controls have been imposed across Greece and the European Central Bank (ECB) will not allow any further emergency funding. The likelihood of “Grexit” (Greece leaving the European currency), as it has been coined, is becoming more probable.
On July 5, Greeks will vote in a national referendum on the bailout proposals being offered to their Prime Minister, Alexis Tsipras. He is currently spearheading a “No” vote campaign, believing it will, somehow, strengthen his bargaining position among his European counterparts and with his country”s creditors. However, many European finance ministers have publicly said a “No” vote will mean an abrupt end to Greece’s euro participation, resulting in “Grexit.”
Already the effects of the Greek crisis have been felt on trading floors across global stock markets, and there will be further fears around Sunday’s voting in Greece. Government mismanagement of public monies has led to this uncertain outcome for Greece. If you are concerned that this crisis is only the beginning of an uncertain economic future for many of us, please Like & Share this post.