Greece referendum may well be a political gamble to buy more time
GREEK Prime Minister Alexis Tsipras's decision to call for a national referendum on July 5 may not have been an impulsive move.
Rather, it could have been a calculated political gamble to buy more time. The referendum was announced just ahead of the deadline to pay back 1.6 billion euros (S$2.4 billion) that Greece owes to the International Monetary Fund (IMF), which was due on Tuesday (European time).
Markets and financial analysts are keeping a close watch on how this plays out. Mr Tsipras and his supporters have upped the rhetoric and indicated that they would wait for the results of the referendum on the "strict and humiliating austerity" measures that were being imposed on Greece by the European Union, in return for financial assistance, before deciding on the next course of action. The EU on its part has said a "no" vote effectively means a no to Greece's membership of the EU, which it joined in 1981 as one of the founding members.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
Climate philanthropy key to South-east Asia’s green transition
Without a game changer, Sentosa Cove condos will continue underperforming
Relative measures can be absolutely wrong
If the US economy is robust, why is the yield curve still inverted?
ST Engineering focuses on synergies from US$2.7 billion acquisition to reach greater heights
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps