This topic is discussed by many politicians and is on the spotlight of mass media all over the Europe. The referendum on bailout propositions of European Central Bank (ECB), International Monetary Fund (IMF) and European Commission (EC) was held on 5 July, 2015. The prime-minister of Greece Alexis Tsipras announced referendum date on 27 June, 2015.
As a result of referendum bailout conditions was rejected by majority of population by 69% over 31%. Greece said `No` to European financial institutions` bailout conditions and it made the situation worse and more complicated. Eurogroup president Jeroen Dijsselbloem, European Commission president Jean-Claude Juncker and others authorities met the results of Greek referendum with scepsis and underlined the possibility of further agreement on the same conditions without any fundamental changes.
The first outcome of referendum was the resignation of Yanis Varoufakis, Minister of Finance despite the support of majority Greek population. On his official blog he informed about his resignation: `Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today`. He was succeeded by Euclid Tsakalotos.
However, on Monday, 13 July, the Syriza-led government of Greece accepted a bailout package that contains larger pension cuts and tax increases than the one rejected by Greek voters in the referendum. This package was voted in Parliament and led the split the coalition of Syriza. Greek parliament has agreed to the measures demanded by its creditors, but 38 government MPs failed to back Alexis Tsipras. «I am the last person to shirk this responsibility,» Tsipras told parliament.
In exchange for funding worth up to 86 billion euros, Greece has accepted reforms including pension adjustments, increases to value added taxes, an overhaul of its collective bargaining system, measures to liberalize its economy and tight limits on public spending.It has also agreed to sequester 50 billion euros of public assets in a special privatization fund to act as collateral on the deal.
The results of bailout package
After referendum and bailout package it`s become clear Grexit failed. Acceptance of bailout package also means the results of referendum, i.e. the willpower of population, were ignored by the government, which is under pressure of international creditors. As a result of accepting bailout package the Greek banks reopened on Monday after being closed for three weeks but many restrictions remain. The limit on cash withdrawals stays at 60 euros a day, capped at 300 euros this week. That will be raised next week to 420 euros.
European authorities released billions of euros in emergency funding to allow Athens to meet debt deadlines and reopen banks. The public sector is against the outrageous outcomes of bailout package. The protests arose last week after voting in parliament. The agreement showed Greek authorities were forced to accept conditions of creditors, otherwise Grexit could happen.
European Union could keep Greece as a member, but its membership is still fragile and may have some negative impact on other members within union. The possible Grexit shocked markets all over Europe and kept them in indefinite condition. Yet the discussions of Greece reduced last days but it`s real problem which should be solved in long-time period.