The prime minister and leader of the Syriza party will submit his resignation to the country’s president Thursday, making way for early elections scheduled for Sept. 20, government officials report.
In the modern global banking system, all banks need a credit line with the central bank in order to be part of the payments system. Choking off that credit line was a form of blackmail the Greek government couldn’t refuse.
The International Monetary Fund has said it will not participate in a new bailout for Greece until an “explicit and concrete agreement” on debt relief is reached by the country’s eurozone creditors.
Greece’s former finance minister had a contingency plan if the country’s creditors shut down its banking system and blocked its ability to do business with other countries, as they eventually did. And he’s being pilloried for it.
Beppe Grillo, the comedian-turned-populist-leader of Italy’s second largest political party, has called for the nationalization of Italian banks and an exit from the euro.
Yanis Varoufakis, who resigned recently, predicted that the measures will “go down in history as the greatest disaster of macroeconomic management ever.”
The Guardian's Phoebe Greenwood visits Athens' street markets and cafes to discover nearly empty establishments as Greeks cut down on everything from meat to fruit and dairy while their country's fate remains unresolved.
In the past five years, the old political categories -- left, right, center or capitalist and socialist -- have been challenged by a new category: youth.
The International Monetary Fund, part of the troika of financial organizations currently demanding austerity from Greece, “electrified the referendum debate in Greece after it conceded that the crisis-ridden country needs” $55 billion in extra funds and large-scale debt relief to create “breathing space” and stabilize its economy, The Guardian reports.
The aim of German Chancellor Angela Merkel and other EU powers in the Greek debt crisis is “apparently to humiliate Tsipras and his government in preparation for its early replacement with a more pliable administration,” writes Seamus Milne, associate editor of The Guardian.