The referendum was a smoke screen by Tsipras to legitimize his plan to keep Greece in the euro zone under heavy austerity measures.
Athens has met at noon today the first condition to avoid its exit from the euro, and in doing so, has conceded more than anyone had ever imagined after the NO vote on Sunday.
The Greek government has already submitted an application for a third program of financial aid to the European rescue mechanism, a plan that requests 50 billion euros to supposedly take Greece and Europe out of the most acute phase of the European crisis.
With this proposal, the Greek Government makes three large concessions. The first is that before Tsipras asked for a loan as a paliative measure to hold Greece above water, but now he has called for a complete financial rescue program that will do nothing less than rescue the French and German banks while leaving the Greek people adrift.
Tsipras’ plan implies even more conditions that will be imposed by the Troika and even more evaluations. European sources explain that such evaluations may come as oftem as every 30 days.
The second concession: a rise in VAT and the reform of the pension system as early as next week. Those are some of the proposals included In Tsipras’ latest proposal sent to Europe in the form of a letter on June 30, where he had asked to delay the pension reform until October.
Third aspect in which Athens gives in to Europe is debt restructuring. In his request, Tsipras requests to put it off until the fall.
The Eurogroup of finance ministers, presided by Jeoren Dijsselbloem, will analyze the new proposal today at a meeting by teleconference.
Several conditions are still left to be negotiated before the European summit on Sunday. Greece should on Thursday the priority measures proposed, based on the proposal of last June 30.
German Chancellor Angela Merkel, made it clear yesterday that these details have to lead to a “harder” plan by Greece.
The Eurogroup will analyze it Saturday and the leaders of the euro should give their approval on Sunday. The ECB is committed to keep the Greek banking system afloat until next Monday, when the new banking takeover of Greece should be complete.
The partners are seeking a formula to avoid a default of Greece on loans provided by the ECB, whose payment will come on 20 July and whose total amount reaches 3,3 billion euros.
In exchange for many of its requests, Greece must agree to adopt priority measures suchas cuts or reforms if it wants to avoid a default. In parallel, Europe should ensure some margin for financial institutions who are nearing financial collapse due to the continued outflow of deposits.
Referendum to exit Sovereignty
Sunday’s vote in Greece has been a demonstration of democracy, except for the move by the government of Alexis Tsipras to take the new mandate to submerge Greece deeper into debt.
Sunday’s example of democracy is now being used by Tsipras to do what Europe wanted, not what the Greek people asked him to do.
Yanis Varoufakis’ exit from the government was the sign that Tsipras would not try to deliver Greece from perpetual debt, but that he would sink it even deeper. Varoufakis was the only inconvenience left for Tsipras to negotiate with the Troika at their leisure.
The referendum was the way in which Syriza’s leader masterfully prepared the field to bring more suffering to the Greek people, to betray the trust placed in him by the Greeks.
The NO vote was a victory against external powers, an example of pride and Independence, but the Greek government has now thrown all of the Greek people’s effort out of the window.
Tsipras’ actions post referendum are clear proof that he sought to swindle his supporters into believing that a NO vote in the referendum would guarantee transparency, and a future free from a debt that was illegally placed on the Greek people by previous administrations. Merkel and Hollande also played along their roles in the plan to keep Greece chained down.
Syriza’s supporters in Spain and Latin América were also cheated. The Greek crisis went from being a defeat for the Troika and the banks to being their strongest victory now that Tispras has sought a new financial bailout of the foreign banks that hold Greece’s ilegal debt.
It had been argued that what was at stakein Greece was much more than whether Greece remained within the euro zone; whether Tsipras trips to Moscow and Chinese investment in the Greek communications system would be na alternative to Europe, but it all now sounds like geopolitical games, because the Greek government do not want to change Europe for Moscow.
The same Greek people who celebrated the NO vote on Sunday should take to the streets and demand Alexis Tsipras’ exit from the goverment as he has used his leverage to commit treason against the people that entrusted Greece’s future in his hands.