The Greek people are being offered a chance to vote in a referendum on the finance deal on offer. They should accept it and allow their country to move on. The years of profoundly unsettling brinkmanship have been deeply damaging to Greece’s economy and Greece business now needs some stability so it can start to plan how to raise Greece’s productivity. In addition, the Syriza government has done well in making it clear to all of Europe that German-style austerity is not the only way forward.
The aggressive Syriza government in Greece was elected on a promise of firm anti-austerity and total resistance to tough European Union conditions on cutting Greek government spending. The two sides are now close to a deal, with the European Commission and the European Central Bank agreeing that what Greeks have offered is not bad, but the International Monetary Fund remains determined to see more cuts, particularly in the generous Greek pension system.
Over the weekend, the Greek Prime Minister Alexis Tsipras once again stunned negotiators — this time, by suddenly walking away and calling for a referendum on the offer as it stands. From their side, the creditors should hold off declaring Greece in default until the referendum offers a clear decision either way and the referendum may be a way for Tsipras to get a mandate from the people to change his stance and accept the deal. It may be the way forward that both Europe and the Greeks desperately need.
