Monday, July 6, 2015

Greek people vote no to austerity

Today, a historic, and rather an absurd referendum was conducted.

Over 60% of the voters did not support the austerity policy the EU has encouraged to Greece, according to an intermediate result of the vote.

The Irish Times: Greece referendum: Greeks vote No as third of votes counted

As I mentioned, this result is expectable, as people elected Tsipras, a politician belonging to the extreme left, as a Prime Minister. This result can relieve Tsipras and his colleagues. But so what? I am strongly doubtful that he has a panacea to deal with the financial crisis.

My past entry: Greece to default by the silly referendum

One of the feasible strategies is the resurrection of Drachma. Regardless of exit from Eurozone, Greece is suffering from serious depression. One of the reasons is insufficient circulation of the currency. Authorizing Drachma as a regional currency can help to empower the domestic economy, even if it is not admitted internationally. Although issuing a local currency is a violation of EU legislation, the government has few options.

To be honest, I think that this result will be a disgrace to Greek people. They would be considered not to return the debt. I am not sure what would happen if in a similar situation in Japan. In general, Japanese people respect the regulation sincerely. However, public opinion is easily twisted by the leading by politicians and mass media. In this case, the majority of Greek people must wish to stay in Eurozone. If this "No" vote had meant an immediate exile from EU and Eurozone, the result would not have been sure.

Anyway, Greece is going to default, and the trust of EU itself was seriously injured. I am afraid that German people is disappointed with this result, as they have been contributing a lot to the sustainability of EU.

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