Thursday, July 9, 2015

Greece: The Euphoria After Sunday’s ‘No’ Vote Is Fading Fast

A manager tries to shut the door of a bank as hundreds of pensioners line up outside a National Bank in Athens, in early July. Now Greece if facing the prospect of banks being closed or merged, bailout or not. YANNIS BEHRAKIS/Reuters

Wall Street Journal: Fear Grows in Greece as Decisive Hour Nears

As creditors express skepticism and capital controls bite, many Greeks find euphoria after Sunday’s ‘no’ vote fading fast.

Greece requested a new three-year bailout from its skeptical eurozone creditors and pledged some economic overhauls on Wednesday, but the euphoria some Greeks felt after Sunday’s “no” vote on the last deal was fading fast.

Whether European leaders accept the Greek government’s application for more emergency loans at a crisis summit Sunday still depends on Prime Minister Alexis Tsipras making a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of often-acrimonious negotiations.

“The actual examination can only begin once the full package has been put on the table,” said a spokesman for German Finance Minister Wolfgang Schäuble, who has pushed a hard line on Greece and made clear that Germany is prepared for a potential Greek exit from the eurozone.

WNU Editor: This was expected. After the vote everyone was happy .... but the banks are still closed, and will probably be kept closed if there is no agreement this weekend. A malfunctioning banking system is a recipe for disaster, and the Greeks are now facing that reality .... and with each passing day a realization that only grows.

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