Germany blinks!
Greek referendum: Germany says it won’t leave Greece in the lurch
German finance minister, Wolfgang Schäuble, appears to back No vote in last-minute intervention on Saturday
John Hooper in Athens
Saturday 4 July 2015 18.49 BST
Investors around the world held their breath on Saturday as 10 million Greeks prepared to vote in a referendum that presents the biggest challenge to the euro since its adoption.
After more than five months of eyeball-to-eyeball confrontation between Alexis Tsipras’s radical left-led government and Greece’s creditors, and with only hours to go before voting began, one of the most hawkish of the lenders appeared to blink. Germany’s finance minister, Wolfgang Schäuble, until now even more of a hardliner than his chancellor Angela Merkel, suddenly turned a more conciliatory face towards Athens.
Having previously insisted that a No vote on the lenders’ last terms would see their country forced out of the euro, Schäuble told the Bild newspaper that the choice before them on Sunday was between holding on to the euro and being “temporarily without it”.
It was far from clear what Schäuble had in mind, but economists have mooted the notion of a period in which Greece might go back to its national currency, the drachma, while its economy recovered.
With pharmacists in Athens reporting that the government had rationed the distribution of drugs, and fears being raised of food shortages within weeks, the finance minister of Europe’s biggest economy said: “It is clear that we will not leave the [Greek] people in the lurch.”
What effect Schäuble’s last-minute intervention may have on the vote is impossible to gauge. But it appears to favour the No camp.
His remarks seemed to endorse the claims of the Greek government, which has called for a No vote, to the effect that a majority in favour of rejection would not lead to the country’s exit from the euro (“Grexit”).
The German minister’s tone was strikingly at odds with that of his charismatic but controversial Greek counterpart, Yanis Varoufakis, who turned up the heat before the ballot by accusing Greece’s creditors of terrorism.
“Why did they force us to close the banks?” he asked in an interview published by the Spanish daily El Mundo. “To instil fear in people. And spreading fear is called terrorism.”
Rallies in support of Greece were held in several European capitals on Saturday. Others were also held in Britain: in London, Liverpool and Edinburgh.
More:
http://www.theguardian.com/world/2015/jul/04/greek-referendum-germany-no-vote