This Sunday 5 July, the people of Greece are called to make a critical decision about their future within the Eurozone in a referendum.
Greeks are called to vote either “YES” to the harsh demands imposed by the EU, ECB and IMF, or “NO” to further austerity that has crippled Greece’s economy and it’s social fabric in the last 5 years.
The debt isn’t viable, however, a possible Grexit could result in an unthinkable disaster for Greece and the rest of the countries within the Eurozone.
Greece has become the first developed nation to default on an International Monetary Fund loan after the midnight deadline expired, with the country losing access to existing financing.
With no money to pay, no more financial aid and a possible exit from the eurozone, experts are now speculating on the worst-case scenario facing Greece.
If Greece does exit the euro, Greece would either need a new currency, or revert to its old one, the drachma, but the transition would be long and legally complex.
Economists say the value of the drachma might be about half that of the euro so the savings of Greek citizens could be worth half what they are today, even if they keep repaying debts in euros.
If Greeks vote against the package of reforms in Sunday’s referendum, the country could be forced to leave the eurozone. No country has ever left the shared currency, and there were never any plans put into place for such an event to occur. It is uncharted territory.
In the event Greece does leave the euro, the government would need to pay its bills by printing IOUs, which would become a parallel currency.
In a show of solidarity, the people of Melbourne are holding a peaceful demonstration on Saturday 4 July to #StandTogetherWithGreece during this difficult time.
To join visit the event’s page on Facebook here: www.facebook.com/events/1616055182012401
A solidarity march will be held in Brisbane on the same day outside the City Hall at 10.00am.
For more information visit: www.facebook.com/events/1455322611435591/
