(Bloomberg) — Greece voted against yielding to further austerity demanded by creditors, leaving Europe’s leaders to determine if the renegade nation can remain in the euro.
With 85 percent of votes counted, 62 percent of voters backed Prime Minister Alexis Tsipras and his Coalition of the Radical Left, or Syriza, by voting “no” to the latest proposals for spending cuts and tax increases. Thirty-eight percent voted “yes,” less than opinion polls predicted, according to results from the Interior Ministry.
The verdict turns the tables on German Chancellor Angela Merkel and her counterparts across Europe, who must decide if a financial rescue of the region’s most indebted country is still possible. It significantly raises the chances of a Greek exit from the single currency, as the country’s banks run out of cash and its economy staggers toward all-out collapse.
On the news of the overwhelming no vote to Europe, the Euro fell by over 1%.
And S&P and Dow futures are down over 1%.
Now comes the counter gambit. The IMF, etc will likely return will a counter proposal. And unless the ELA (emergency lending) increase is approved by the ECB, Greeks are likely to see deposit haircuts to preserve the banks. And maybe even if emergency funding is approved!
Note to Greeks: I would not burn the Euro currency until you find out if Drachmas are being printed!