Greeks Say “No” To Lenders’ Austerity Plans

The people of Greece voted a resounding “no” yesterday, rejecting the austerity plans of lenders from the Eurozone, and the IMF protested. But what happens next for the Greeks? The state is broke and urgently needs new money. Withdrawal from the EU would be conceivable, but would that help the Greeks? After the vote, more questions than answers remain and Prime Minister Alexis Tsipras wants to continue negotiating with the lenders.

The Greek “No” To The EU’s Austerity Plans

Tsipras did not want to accept the lenders’ austerity plans. The austerity plans were forced on the Greeks as a condition for new loans, but the Greek government wanted to let the people of Greece vote on whether or not to accept the lenders’ austerity plans. So the vote was held yesterday, Sunday, in Greece, where Greeks could only choose between “yes” and “no.” 61.3 percent of Greeks voted “no” yesterday and so the Greek government of Alexis Tsipras will also take this position in further negotiations.

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What Happens After The “No” Vote?

The question of the consequences of the Greek “No” to the austerity plans of the lenders is difficult to answer. Either Tsipras agrees and implements the austerity plans even though his people are against it – then there will be new money, but then there will also be unrest on the streets in Greece. Already yesterday evening there were isolated people on the streets who protested. Or else, Greece will get new money elsewhere, for example in Russia or China. The worst thing would be if Greece actually left the EU because that would not be good for the whole EU, because we would never get back the money we lent to Greece and the EU wants to show as an example to the whole world that each member takes care of the others and vice versa- and the model would have failed. Apart from that, Greece could remain a very poor country for decades.

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Explanation Of The Difficult Words

The Eurozone includes the countries that have the euro as a means of payment.

The IMF is part of the World Bank Group and lends to countries around the world.

The EU is a group of countries in Europe that work closely together and have many advantages as a result. For example, as an EU citizen, you can live and work in any country in the EU without the country’s consent.

A Prime Minister is the head of government of a country, comparable to the Chancellor in Germany.

Photo: Sarafanny

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