[7]
We already warned for the bank run in our column this weekend, [8] and our prediction that ‘some banks would have to remain closed on Monday’ has come true. In fact, the situation is actually worse than what we originally expected. Instead of a few weak banks having to keep their doors closed, the ENTIRE financial system of Greece will be shut down this week (including the Athens Stock Exchange) whilst the government is also working towards capital controls.
The referendum is a perfect example of how Tsipras wants to cover his ass. By pretending the people have the final vote, he and his government won’t have to take ANY responsibility for its actions. Tsipras pretends this is ‘democracy at work’, but it goes further than that. The modern democracy calls for the people to elect officials to represent their interests and to make decisions on their behalf and to be held accountable for their decisions.
By pushing for a referendum, Tsipras – and Syriza – are trying to avoid any responsibility, and even though they know that Greece will need to cave and accept the bailout terms imposed by the triumvirate (if it wants to stay part of the Eurozone), they don’t want to admit so as they would be breaking their promises to the Greek people.
[7]
So despite Varoufakis claiming several times he was against capital controls [9], Greece has instated them anyway after seeing $10B being withdrawn from the bank accounts in less than two weeks time. As from today on Greeks can only withdraw 60 EUR per day (which is 1/5th of what people in Cyprus could withdraw during their capital control stage). This caused a wide-spread panic and people immediately started to hoard pasta and rice in the Greek supermarkets. Meanwhile, several gas stations have run out of gas, but the head of ELPE (Hellenic Petroleum) says Greece has an inventory that will last for ‘several months’ [10].
[7]
These capital controls and semi-panic situation is exactly what Tsipras, Varoufakis and others wanted to create. They could not take the decision to accept the Euro-proposal themselves without being lynched upon their return to Athens. But by making the daily life so incredibly difficult for its citizens it’s actually forcing them to vote ‘yes’ in the upcoming referendum. A referendum about a proposal which isn’t even on the table anymore.
The question the Greeks need to answer next Sunday is whether or not they agree to the requirements and demands by the institutions as proposed on June 25th, and that’s weird as this question is excluding all progress made on June 26 and 27th where the European institutions have accepted some of Greece’s plans such as the VAT-increase for tourists.
Tsipras is hiding behind the ‘voice of the people’, but by imposing capital controls and by shutting down the banks he’s pushing people towards a choice they might regret later on.
But hey, meanwhile you get free bus rides [11] in Athens. Socialism at its best.
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