Greece and Eurozone in the conflict zone over referendum

Europe’s ailing but defiant economy Greece and Eruozone are in the course of a devastating conflict over the referendum announced by the Greek PM Alexis Tsipras.

The Greek PM has announced a rather surprising referendum for July 5th about the austerity plan suggested by its mainly European creditors. The time cosnusming referendum shows that Greece is not politically willing to offer any commitment like austerity.

Reacting to the Greek referendum move, Eurozone leaders have said that Athens has violated the negotiation process unilaterally.

For the first time, the Eurozone leaders also made hints that they are thinking a European Monetary Union without Greece. Solidarity slogans are started to come from different quarters after Greek decision of going for referendum.

Head of Eurogrou- Jeroen Dijsselbloem told that they are determined "to maintain the strength and credibility of the eurozone".

He also said that finance ministers would reconvene to discuss the consequences of the latest developments.

Europe was not impressed by the Greek PM’s visit to Russia at a time he was supposed to engage more with Europe in the crisis time.

Greece is in the final phase of negotiations with Eurozone to avail immediate for the repayment of its loans. More immediate help from the Eurozone is needed to finance some of the Greek banks which are facing liquidity crisis in the context of panic cash withdrawal from the public. As the crisis looms, the first catastrophe may occur in the banking system.

After the referendum decision, Eurozone also warned that it may stop providing liquidity support to Greek banks.

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Tags : greek crisis