Rõivas: Greek referendum result will make situation worse ({{commentsTotal}})

Following the results of the Greek referendum, Estonian Prime Minister Taavi Rõivas said that the decision of the Greeks to decline the international assistance program will make the situation worse and significantly reduces Greece’s chances of emerging from the crisis.

“The reforms in Greece are still inevitable and the decision to reject the international offer of help makes the situation critical,” said Rõivas, adding that now only bad and worse options remain to solve Greece’s situation.

According to Rõivas, rejecting the assistance program through a questionable referendum will not in any way help Greece to obtain funding from financial institutions and in no way contributes to solving the situation, which is to build a sustainable economy. “The reaction of the financial markets proves that there is a considerable increase in uncertainty on an international level and in terms of the financial and economic future of Greece.”

The President of the European Council, Donald Tusk, has convened a meeting of the heads of states of the euro area, which will take place on Tuesday evening. According to Rõivas, Estonia will take all necessary steps to maintain the stability of the eurozone with its other members and institutions. “Very intensive work is expected in the coming days by the heads of the euro area and the EU as well as at the level of finance and prime ministers,” the prime minister said.

A referendum to decide whether Greece was to accept the bailout conditions in the country's government-debt crisis proposed jointly by the European Commission (EC), the International Monetary Fund (IMF) and the European Central Bank (ECB), took place on July 5. It was the first referendum to be held since the republic referendum of 1974, and the only one in modern Greek history not to concern the form of government.

As a result of the referendum, the bailout conditions were rejected by a majority of over 61 percent to 39 percent approving, with the "No" vote winning in all of Greece's regions.

Editor: S. Tambur

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