Zee News: Split Greece teeters on the brink with referendum

He said it would make sense for Greece’s creditors to compensate the country if a “yes” vote prevails by easing austerity, earmarking more developments funds and finding ways to alleviate the debt burden without necessarily resorting to write-offs.

Demonstrators in Dublin marched from the Central Bank to the Dáil in what they call ‘ a common battle against austerity in both countries’.

A “No” referendum campaign poster is seen before a statue of the Greek Godess Athena in Athens.

For the radical left-led Greek government, the proposals were unacceptable.

He said: “Greece is the cradle of civilisation”.

Varoufakis has said he would step down as finance minister if a “Yes” vote carried the day, and the rest of the government “may very well” do the same. Although it did not block it, the validity of the referendum and its outcome may be challenged after it is held.

Here’s a look at the events that each vote might trigger.

Police said that 25,000 people had gathered for the pro-government demonstration urging a “No” vote in tomorrow’s plebiscite, while 20,000 for a “Yes” outcome yelled pro-European slogans just 800m away, separated by police with riot shields.

He would basically be forced to accept the creditors’ demands without amendments, said Nicholas Burns, a professor at Harvard University and ex- USA Ambassador to Greece. And there is nothing in any deal that would prop up Greek banks.

The government has said it will respect the verdict.

– ‘s finance minister accused creditors of trying to “terrorize” Greeks into accepting austerity, warning stood to lose as much as if the country is forced from the euro after a referendum on Sunday on bailout terms. He and his government are actively campaigning against the agreement, but haven’t yet explained what they’ll do if successful, or even if they fail.

It’s not clear, however, if that would involve new elections.

That is unlikely to be agreed on overnight, meaning the harsh controls on money withdrawals and transfers may remain in place for longer than anticipated. The European Central Bank will discuss their emergency lifeline on Monday. That’s unlikely to happen unless the ECB agrees to increase the credit to Greek banks. “Greece is on the brink of a new national schism”.

An additional difficulty is that Greece’s creditors are singing from different hymn sheets. With so much at stake, he said, the rhetoric is getting nasty.

“Even if it came to a collapse of some individual banks, the risk of contagion is relatively small”, he said. “The extent to which there is a sufficient political shift in Greece to allow this to materialize remains the key source of uncertainty”.

The left-wing government is urging a “No” vote, saying ‘s European partners are bluffing when they warn that would mean a Greek departure from ‘s single currency, with unforeseeable consequences for, and the global economy. Varoufakis said that whatever the result of Sunday’s vote, in which the government is calling for a “no” vote, the banks would reopen and Athens would end up reaching an accord with its creditors.

Others, such as the leaders of France and Italy, appear to be holding the door ajar for further talks.

German Finance Minister Wolfgang Schauble also suggested in an interview with a German newspaper that Greece could exit the eurozone temporarily. It’s not true this is a vote on the euro.

With its failure to repay the roughly 1.6 billion euros ($1.8 billion) to the International Monetary Fund, Greece became the first developed country to fall into arrears on payments to the fund. The last country to do so was Zimbabwe in 2001. Banks stayed shut, with ATMs dispensing a meager maximum of 60 euros per customer.

In such a case, printing a new currency may be the only option available, which nearly everyone thinks will be a short-term disaster for the Greek economy.

Odysseus got through his ordeal, but Scylla the monster ate six of his men – not a great thought for Greeks seeking to navigate the straits of bankruptcy and national pride.

“A “no” will result in Grexit with an uncertain future and high costs to Greek society, at least initially”, said Guntram Wolff, director of think-tank Bruegel.