Global markets are bracing for a week of turmoil after eurozone finance ministers refused to extend Greece's bailout program beyond tomorrow's deadline, bringing the country closer to ejection from Europe's single currency than ever before. If that result is played out next weekend, it could trigger the resignation of the Greek government, and nobody knows how the eurozone might respond to that development. A bank manager explains the situation to distraught pensioners outside a branch of the National Bank of Greece in Thessaloniki on Monday. The European Central Bank (ECB) said on Sunday that it would not expand the emergency loan programme that has been propping up Greek banks.
The money was supposed to buy Greece time to stabilise its finances and quell market fears over the integrity of the Euro union. After Sunday’s failed meeting of Eurozone finance ministers, Germany said Greece remains part of the Eurozone. Besides the payments due on June 30, Greece owes the IMF and ECB another over € 10 billion over July and August. While some of the world’s biggest financial services players believe Greece can adopt a new currency over time, no one expects the process to be painless or free of costs. As Greece and its international creditors fail to reach a deal to avert Greece from a default and consequently exiting from the Eurozone, many questions emerge in our heads. Yes, they have specific interests and thus certain plans regarding Greece and this plan involves Germany, as well. From 1996 to 2004, Panhellenic Socialist Movement (PASOK) ruled Greece under Andreas Papandreou and Costas Simitis, respectively.
But it mainly goes toward paying off Greece’s international loans, rather than making its way into the economy, which has shrunk by a quarter in five years.
But creditors say Greece’s plans fall short, and accuse Tsipras of trying to roll back the austerity measures unilaterally.


However, Berlin has said in the past that the cost of keeping Greece in could not be ignored altogether — and should the ECB, which has capped emergency loans at € 89 billion, shut the tap completely, Greek banks would collapse and a Grexit would be inevitable. Although Greece is a small country, it has a specific weight due to its history, and geopolitical position. At the end of January this year, the leftist Syriza government had been elected in Greece and hunched the testing operation.
If we say the roots of the 2008 financial crisis go back to the 1990s and have a look at the governments, which came to power in Greece, a pretty meaningful picture will appear. Prime Minister Alexis Tsipras, who says the ‘troika’ of the ECB, IMF and European Commission has been unfair to Greece, got Parliament’s approval for a public referendum on July 5 on the debt negotiations. Greece needs a deal, and Tsipras seems to be betting that the troika will want to reach a compromise to avoid the huge unknowns of Greece defaulting or possibly leaving the Euro. And yet, an IMF default — to which Athens owes € 1.5 billion — will not force Greece out of the Eurozone. Bank of Greece has said Grexit might bring deep recession, huge joblessness and crashing incomes.
As Prime Minister Alexis Tsipras came to power, he already knew that the creditors -the International Monetary Fund (IMF), the European Central Bank (ECB) and the European Commission would not reach a deal with Greece. The whole process can be interpreted as the implementation of a new technocrat government, under which Greece will be accepting all kinds of neoliberal policies applied by Germany and the IMF.
The one and only thing what Germany understands from a union, is the one which it has all the control over each member. Of course, he did not also last for too long, street protests and reaction of the Greek public had brought the end of the technocrat era. Greeks would lose savings, Greece could become an international credit market pariah, and political instability could bring a coup.


If Greece leaves the Eurozone, it can be expected to be less cooperative with Europe over taking on the migrant surge from North Africa and West Asia. Since Greece has the required infrastructure and ports for these kinds of transportation, it finds itself in huge arguments, much bigger than its size. If one month Panagiotis Pikrammenos’ government is not included, Greeks vote for the New Democracy party and its leader Antonis Samaras in June 2012. But the lenders imposed harsh austerity terms, requiring deep budget cuts, steep tax increases, an overhauling of the Greek economy, streamlining government. In fact, Greek debt crisis also reveals an eco-politics dispute, which concerns not the debt-stricken country, but also whole Europe, emerging economies and the global financial system.
In terms of economics, Turkey will not be like Greece, as it will not be Egypt in terms of politics. Reports suggest banks will remain closed until next weekend's referendum.Lines began forming at Greek ATM machines almost as soon as the PM finished delivering the speech announcing the referendum plan on Saturday morning. Apparently more than a third of ATMs across Greece ran out of cash on Saturday before they could be replenished.Already deposit levels are at their lowest level in 10 years, with more than $100 billion euros withdrawn since the crisis first flared up five years ago. From a different perspective, we believe that the Greek debt crisis will light the way for the future of eco-politics in Turkey, which will be shaped after a coalition is formed. And this time, desperate Greeks voted for George Papandreou, thinking he would be a lot smarter than his father Andreas Papandreou and he came to power.
And the whole process will need to be completed by July 20, when Greece must repay the ECB € 3.5 billion.



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