Athens enters uncharted territory after referendum ‘no’ vote 


Supporters of the No vote celebrate after the results of the referendum in the northern Greek port city of Thessaloniki

Greece lurched into uncharted territory and an uncertain future in Europe’s common currency after voters overwhelmingly rejected demands by international creditors for more austerity measures in exchange for a bailout of its bankrupt economy.
Results showed about 61 percent voted “no,” compared with 39 percent for “yes,” with 100 percent of the vote counted. The referendum — Greece’s first in more than four decades — came amid severe restrictions on financial transactions in the country, imposed last week to stem a bank run that accelerated after the vote was called.
Thousands of jubilant government supporters celebrated in Syntagma Square in front of Parliament, waving Greek flags and chanting “No, no, no!”
Early trading on Asian markets indicated investors were alarmed, as stock indexes fell.
It was a decisive victory for Prime Minister Alexis Tsipras, who had gambled the future of his 5-month-old coalition government — and his country — in an all-or-nothing game of brinkmanship with Greece’s creditors from other European countries that use the euro currency, the International Monetary Fund and the European Central Bank.
“Today we celebrate the victory of democracy,” Tsipras said in a televised address to the nation, describing Sunday as “a bright day in the history of Europe.”
“We proved even in the most difficult circumstances that democracy won’t be blackmailed,” he said.
Tsipras called the referendum last weekend, saying a “no” vote would strengthen his hand to negotiate a better deal for his country. His government has said it believes it would be possible to conclude a deal with creditors within 48 hours.
But European officials and most of Greece’s opposition parties painted the referendum as one of whether the country kept using the euro currency — even though that was not the convoluted question asked on the ballot. Opinion polls Friday showed that 74 percent or more want their country to remain in the euro.
“Given the unfavorable conditions last week, you have made a very brave choice,” Tsipras told Greeks in his address. “But I am aware that the mandate you gave me is not a mandate for rupture.” He said he would seek to negotiate a viable solution with the country’s creditors.
Besieged by a prolonged recession, high unemployment and banks dangerously low on capital, Greece defaulted on an IMF loan repayment last week, becoming the first developed nation to do so.
Now some analysts wonder if Greece is so starved of cash that it could be forced to start issuing its own currency and become the first country to leave the 19-member eurozone, established in 1999.
Tsipras was elected in January on promises to repeal the austerity demanded in return for its bailout and negotiations broke down late last month after dragging on unsuccessfully for five months. Elena Becatoros and Demetris Nellas, Athens, AP