The Greeks on Sunday, voted overwhelmingly rejected conditions of a rescue package from creditors on Sunday with a resounding 'No'. The vote means that Greece has rejected further austerity measures in the crucial bailout referendum.
The question that the referendum posed for voting was:
"Should the proposal be accepted, which was submitted by the European Commission, the European Central Bank, and the International Monetary Fund in the Eurogroup of 25 June 2015 and consists of two parts that together constitute their comprehensive proposal? The first document is entitled ‘Reforms for the completion of the Current Programme and beyond’ and the second ‘Preliminary Debt Sustainability Analysis."
The focal point of the debate over the vote was whether Greece should do austerity on Europe's terms or place its own terms. This also means that the Greeks need to ponder over whether they they have to cut social spending significantly more, as the Europeans want, or will they have to reduce deficits by raising taxes, as they themselves want.
The voting on Sunday gave a resounding answer to what the Greeks wanted. In clear terms, Greece showed that it wants to move ahead on its own terms.
After failing to reach a deal with the Eurogroup on an extension of its bailout programme Greece's radical leftist government closed the country's banks, imposed capital controls until July 6 and defaulted on a huge IMF payment.
As the euro slid more than 1 per cent against the dollar and European stock and bond markets were poised to take a sharp hit with the resumption of trade on Monday. In view of the decision taken by Greece, European leaders will be meeting on Monday to discuss their next move.
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