All media attention is focused on the Greek referendum which was held yesterday and which led to a strong “No” response, as show the following results: 61.3% of “No”, against 38.7% who voted “Yes”. The much larger-than-expected win constitutes an “undeniable political victory” for Greek PM Alexis Tsipras, who “managed to convince the Greeks that a “No” did not necessarily imply a Grexit” but would instead allow Greece to return to the negotiating table in a better position, reports Les Echos.
Alexis Tsipras and Yanis Varoufakis have welcomed the outcome of the Greek referendum. In a speech, Mr Tsipras talked about a “proud decision of the Greek people,” as quoted in Bild Zeitung. The referendum was not a vote about the euro, but about what kind of Europe the Greeks want. “We want an agreement with the European Commission,” stressed Mr Tsipras, also quoted by the German daily – among others.
Ta Nea notes that, in an extremely ironic announcement, Brussels said that EC President Jean-Claude Juncker is having consultations for the Greek issue with the “democratically elected” leaders of the euro area members, excluding Greece. The daily highlights that Mr Juncker refused to talk with Mr Tsipras, despite the fact that the latter called him. The Greek newspaper alarmingly notes that the statement of Eurogroup President Jeroen Dijsselbloem was particularly harsh. Mr Dijsselbloem spoke of a “sad decision” in the Greek referendum, adding that hard measures and reforms are unavoidable for the recovery of the Greek economy.
Both Mr Dijsselbloem and European Parliament President Martin Schulz stated that they are now expecting the Greek proposals. “Mr Tsipras has torn down all the bridges with Europe,” said German Vice-Chancellor Sigmar Gabriel, quoted in El Pais. It is also reported that French President François Hollande will meet with German Chancellor Angela Merkel today in a “tense” context, as Mr Hollande was in favour of compromising in order to reach an agreement while Ms Merkel was following a much stricter line regarding Greece. Les Echos and Le Soir – among others – further say that EC President Jean-Claude Juncker will have a teleconference with European Council President Donald Tusk, ECB President Mario Draghi and Eurogroup President Dijsselbloem for the Greek issue.
The meeting of the ECB’s Governing Council will be crucial for the developments, since it will decide the liquidity issue of the Greek banks. The French economic newspaper also notes that this result is a real shock for most EU and member states leaders, who considered that a “No” would rush a Greek euro area exit and now need to adjust their positions. In a more nuanced tone, France Inter’s Brussels-based correspondent Quentin Dickinson says that, in the opinion of the EC, the result of the referendum does not erase the issues with Greece. From this point of view, the referendum is “at best a non-event, at worst an inopportune additional complication,” the journalist says.
In an opinion article in Público, António Vitorino, Jacques Delors and Pascal Lamy write that the negotiations between Greece and the EU have understandably created two opposed strategies and political positioning. However it is time to surpass and diagnose correctly the situation, they also underline. The media release a tonne of comments and analyses about yesterday’s results, PM Tsipras, and the possibility of a Grexit. In Le Figaro’s editorial, Gaëtan de Capèle considers that the Greek PM is fooling himself by believing that his political success will play in his favour with his partners. And even if it did, “the voices of 18 countries have more value than that of one,” Mr de Capèle stresses, adding that “unless a miracle happens, the dreaded Grexit will take place.”
ABC’s leader writer accuses PM Tsipras of having used Greek national sovereignty as political weaponry against the EU and its project of integration. An ARD programme notes that the Chairman of the EPP in the European Parliament; Manfred Weber; calls the referendum a “bad signal for Europe and black as coal for Greece.” Along the same lines, Torsten Kraue – in his editorial for Die Welt – stresses that a Grexit could lead to the withdrawal of other member of the Eurogroup. Efimerida ton Syntakton comments that the referendum’s result is considered a personal defeat of German Chancellor Merkel and EC President Juncker, who gave a melodramatic dimension to the Greek issue. “Rejecting a people which legitimises its rebellion using its pain” and “breaking the long European dream of unity” is not the only way”, a Libération editorial further notes.
Yesterday’s verdict confronts the EU’s leadership with one of its most severe crises of confidence and leaves Greece facing potential financial collapse and exit from the euro, says an article of The Guardian. “The troika now needs to try less stick and a bit more carrot,” reads another item of the British newspaper. While an article on the Huffingtonpost.com says that the Greek referendum, and resounding “No” to the deal presented, in part by the IMF, is a clear indicator that the higher ups at the institution must have a reshuffle, the INYT notes that the ECB is firmly placed in uncharted territory with regards to the current turmoil in Greece, and vital decisions must be made on Monday.
The European press is focusing as well on Frankfurt’s upcoming role, saying that, as the ATMs of the Greek banks are running out of cash, all eyes are turned to the ECB’s Governing Council meeting, which will decide on whether increase the ELA ceiling as requested by the Greek side. The achievement of an agreement within the next 48 hours is a priority, however banking sources estimate that such a development is extremely difficult, says Naftemporiki.
Other comments say that the crisis with Greece is a result of the fragile institutional state of the EU, as stresses former MEP Jean-Paul Benoît in an interview with L’Opinion. According to him, “since Jacques Delors left office, there is no more political voice at the head of the Commission.” In another interview with the same French daily, Socialist MEP Pervenche Berès believes that the Greek crisis is highlighting a “failure of the euro area to handle such a situation.” She considers that the efforts requested by Greece’s creditors are still “unachievable.” According to her, “Europe was [the element] which has been lacking the most in this entire crisis,” adding that “each country was first focused on its own national political imperatives.”
In an interview with The Times, European Commissioner Moscovici acknowledged that there had to be “a more integrated euro area with stronger governance.” In an interview with La Stampa, former European Commission President Romano Prodi says that if Europe does not bring in a change of course in these latest years’ policies, other crises like Greece’s will occur very soon.
In Le Soir, Béatrice Delvaux says the challenge of the European leaders now begins. According to her, the renegotiation of a new plan and the obligation of it being approved by the national parliaments could provoke a direct confrontation of European democracies against Greece’s democracy. Meanwhile, The Times notes that turmoil is expected on global financial markets and that the euro fell sharply against the dollar last night, following the Greek preliminary results.
©europeanunion2015
