By Nawab Khan
BRUSSELS, July 5 (KUNA) -- Greeks are voting Sunday in a referendum that could determine not only the fate of Greece in Europe, but also decide on how the European Union itself evolves.
The leftist Prime Minister of Greece, Alexis Tsipras, surprised everybody by calling for the poll to ask the Greek voters whether they accept or reject the harsh austerity measures and economic reforms demanded by its international creditors, namely the European Commission, the European Central Bank and the International Monetary Fund.
Tsipras has called on Greeks to vote NO against the austerity measures arguing this would strengthen his hands in renewed talks based on new conditions with its international creditors on any news bailout programme.
However, European leaders including German Chancellor Angela Merkel, French President Francois Hollande and the president of the European Commission Jean-Claude Juncker have stressed that the referendum is a vote to decide whether Greece remains in the euro zone and eventually in the EU and have urged the Greek voters to say YES.
Tsipras has repeatedly declared the Greece's position is in the EU and the referendum is not to question its position in Europe but at the same time he has blamed Europe for the country's suffering and woes.
"On Sunday, we are not just deciding that we are staying in Europe, but that we are deciding to live with dignity in Europe," Tspiras told his supporters in a big rally in Athens.
Some analysts opine that European leaders do not want a leftist government in Greece to succeed in challenging the rules set by the international creditors fearing that this could strengthen leftist parties in other EU countries like Spain, Portugal and Italy and eventually lead to the collapse of the single currency union, the euro zone.
"What we are now seeing is a post-modern putsch coordinated by Berlin and aimed at toppling the left-leaning government," commented the Greek daily Proto Thema.
Greek analyst Nikos Konstandaras writing in the daily Kathmerini noted that "on Monday the people will have decided whether they want a solution to our problems while staying inside the euro zone at any cost, or whether they have confidence that the government will achieve something through continuing its policy of conflict with our partners and creditors. Whatever the result, Greece is entering a new era." But regardless how Greeks vote on Sunday, analysts opine that the small country of 11 million people will continue to face huge economic and economic challenges and problems. Greece has accumulated a huge debt of 340 billion euro and economists argue that this debt-stricken country has no resources to repay them.
On June 30, Greece became the first European country to miss the repayment of 1.5 billion euro to the International Monetary Fund (IMF) thus becoming a defaulter and raising fears of an exit from the Eurozone and the EU. The European Central Bank (ECB) has also frozen financial assistance to Greek banks, and Athens had to impose capital control.
Moreover, it should not be forgotten that geographically Greece lies closer to the Middle East than Europe and the country shares a long border with Turkey . Therefore, any turmoil in Greece could create more instability and increase tensions in the region. "What is certain is that come Monday, Greece won't be facing just massive economic problems; it will be a deeply divided country," warned Nikos Marantzidis, a Greek professor of political science.
"If the economic situation deteriorates further, which it probably will, the divide will only run deeper" he said.
If Greece votes NO and is forced out of the euro zone, this will hardly affect the European economy as Greece is neither an economic power nor a political heavyweight. But what is at stake is the international image of the EU which will suffer a huge blow.
The President of the European Council, Donald Tusk, commented in a press interview that "for me the Greek problem is not only about money, not about currency, not about the euro zone, but also about geopolitical context." "Greece and the Balkans are the traditional soft underbelly of Europe. In fact, nothing changed. We have to be very, very cautious when it comes to dramatic decisions about to be or not to be," he warned. (end) nk.rk