The Greek Had No Other Choice and Had Nothing to Lose

• 07.07.2015, 11:20
•  Europe,  "Insight" Analytical Center ,  World

The Greek people said a big orange (colour of the OXI (No) campaign) “NO”  to the offer of reforms suggested by country's international creditors.

Brussels and international creditors did their best to knee Athens and its' government, by rejecting any possible offer of reforms by Greece, in the meantime insisting the country should accept their terms of reform on which further bailout will be provided. The Greek Syriza government did their best to remain faithful to the promises they had given to the people during their campaign. In-between are the Greek people who, although having received an opportunity to have their say by referendum, were not quite sure of the rightness of their choice. Their majority rejected the offer of creditors, and stepped on a road of unknown consequences. Having addressed the people on the eve of the referendum, Greek PM Alexis Tsipras presented the "No" vote as a positive act of dignity and democratic virtue. This time also the people followed him, as they saw no other choice and had nothing to lose. After so many years of crisis and two bailouts, there was nothing they had to lose by rejecting the creditors' offer of new aid in exchange for further painful reforms. They had their say, which as the European Commission officially announced, will be taken into consideration and respected.

With this choice a new precedent is being established by Greece and its people. The will of the people and the country, be it counted or not, is unilateral, thus it creates additional possibility for pressure on the creditors. On the other hand, this forms a new precedent in terms of Eurozone membership. No Eurozone member has ever been so close to leaving the currency union, and no other country has ever opposed Brussels so insistently and for such a long time, as Greece did. The Greek case will be the first and the most decisive one, as at the moment there are many countries that suffer from crisis almost as much (ex. Spain) as Greece and are carefully following the steps Greece and Brussels are undertaking to be able to follow this example, in case it succeeds - be it leaving the Eurozone or be it staying in with the terms they want. To an extent, this again shows failure of the EU to foresee and prevent this kind of cases that would have effected the whole EU administration and liability system as a whole.

As a result, the referendum is just a small component of the process. The crisis and the bailout have already become an indispensable part of Greek life. But one thing is clear that at this point the outcome does not matter any more, Greece and its people have established serious precedents within the EU and Brussels and they will have to deal with it. At the moment it will become harder for the Troika of international creditors to insist on their plan and they will have to make concessions in order to keep their face and value.