Today Greece faces calamity. Banks have been closed for more than a week and the economy is deteriorating at an accelerating rate. Citizens and businesses can’t easily carry on with their normal lives; the tourism industry is plagued by cancellations; companies are postponing paying their workers. Yet the infusion of cash from the European Central Bank that is desperately needed to resuscitate the Greek banking system and jump-start the economy is missing. It will arrive only after Greeks and their lenders come to a final agreement on the details of a new assistance program.
The “no” vote in Sunday’s referendum, by a margin of 61 to 39 percent, has increased the probability of Greece exiting the European monetary union because it has put the burden on the Greek government to deliver a better outcome in its negotiations with the lenders.… Seguir leyendo »