From ‘historic vote’ for Greece's Syriza to #Greferendum: INTERACTIVE TIMELINE
The radical leftist party won parliamentary elections on January 25. The party rose to popularity after it promised to renegotiate Greek debt and put an end to austerity in the country.
The talks between Greece and the Troika, representing international creditors, have stalled since June, after the Eurogroup declined to prolong a financial aid program for Greece or delay payments on earlier debts.
Greece, which has been in crisis since 2009, was supposed to make an IMF loan payment of €1.6 billion by June 30 but failed to do so. It is required to make another major payment of €3.5 billion to the ECB on July 20.
After the negotiations failed, Greece announced it would hold a referendum on July 5 on the Eurogroup’s latest austerity plan.
If Greeks vote “Yes,” the current government is likely to resign and the people will have to accept the harsh austerity measures demanded by the Troika, including additional wage and pension cuts. However, if Greeks vote “No,” this could lead to Greece’s exit from the Eurozone and potentially the EU.
“Whatever happens on Monday [after the referendum], this is a celebration of democracy," said Tsipras, calling on voters to give a “proud ‘No’ to ultimatums and those who terrorize you.”