Fallout of the Greek Referendum Decision

Greece woke up to an uncertain future on Monday after having squarely rejected the terms of new financial aid for their cash-strapped country. The previous night, thousands had rejoiced at the outcome of the referendum that they said had slapped down the architects of a 5 year austerity drive that has ravaged the economy of this southern European nation. 61% of voters rejected creditors’ demands for Greek tax hikes and pension cuts in a result that was more definitive than the polls had predicted. The referendum result adds another layer of uncertainty to a very uncertain situation. The question Greeks answered on Sunday’s referendum ballot paper didn’t mention the euro. But after the people gave an emphatic “No” to proposals from the country’s creditors, Greece will struggle to stay in the single currency. Even if it does, all routes will bring economic hardship and social tension.