Greece’s Prime Minister Alexis Tsipras may have given the nation a somewhat simple yes or no choice in the
bailout referendum on Sunday July 5 — but the ramifications and the number of paths Greece can take in the aftermath is anything but clear.
Currently, the European markets are in turmoil after investor complacency didn’t price in the massive possibility that Greece would default on its debts over the next week. However, you can’t completely blame investors for being a bit complacent — even the International Monetary Fund said last week that it expected the country to meet its debt obligations by the end of the month.
Now, many are saying that its “almost certain” that Greece will fail make its €1.5 billion ($US1.7 billion) debt payment on June 30. Just after midday today, Tsipras said he is seeking support for a bailout extension so Greece doesn’t default tomorrow.
Meanwhile, European Union commissioner chief Jean-Claude Juncker thinks a “no” vote in Sunday’s Greek bailout referendum would be akin to the nation “commit[ing] suicide.”
So what is in store for Greece? This chart by Bloomberg Economics shows just how horrendously complicated it is, whether voters “accept the demands of creditors, ending the negotiations,” or “reject those demands, and then Greek leaders would probably return to the table to seek a compromise, with the threat of leaving the euro area if they couldn’t find middle ground.”