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The European Union is facing its worst crisis since the formation of the euro after Greece voted decisively against accepting the terms of its eurozone bail-out deal.
Early results suggested that around 61 per cent of Greeks had voted to reject the deal, compared to just 39 per cent in favour, despite opinion polls saying right until the eve of polling that the result was too close to call.
The scale of the No vote took European leaders by surprise, and led to panic in the financial markets. German Chancellor Angela Merkel spoke to Alexis Tsipras, the Greek prime minister, and is due to meet the French President, Francois Hollande.
EU leaders have said that a “No” vote would see Greece crash out of the eurozone, dealing a sharp blow to Brussels' blueprints for closer European political and financial integration.
The vote was hailed as a huge symbolic victory by backers of Greece's ruling Syriza party, whose coalition of radical Leftists came to power in January on a promise to fight Brussels-imposed austerity measures.
The move sent shockwaves across Europe with financial markets braced for their worst period of turmoil since the height of the eurozone crisis three years ago.
The scale of the 'no' vote became apparent early on
David Cameron and George Osborne, the Chancellor, will hold an emergency meeting to discuss how to deal with the Greek crisis and ensure that Britain's economic recovery is not adversely affected.
The Prime Minister is on Tuesday expected to attend a summit meeting of EU leaders in Brussels as they discuss how to prevent Greece's possible exit from the eurozone causing economic turmoil across the continent.
The Chancellor and Prime Minister have in recent weeks been holding regular meetings to discuss contingency plans in the event that Greece leaves the eurozone.
Officials have been discussing measures to ensure that British ex-patriates in Greece, thousands of whom are pensioners, as well as UK tourists are protected.
Mr Osborne has also repeatedly warned that the British economy will be hit if Greece leaves the eurozone.
Unfortunately, Greece has chosen a path of isolation
Hans Michelbach, political ally of Anglea Merkel
http://twitter.com/intent/tweet?tex...um-result.html?WT.mc_id=tmgoff_pq_tw_20150423
Senior figures in the Government believe that it could strengthen Britain's negotiating hand ahead of the in-out referendum because the EU will be reluctant to risk losing another member if Greece leaves the bloc.
However, there are fears that chaos in the EU if Greece leaves the eurozone could strengthen the hand of eurosceptics pushing for a British exit.
In Athens, a festival atmosphere prevailed in front of the parliament in Syntagma Square following the result, with "No" campaigners blowing whistles and waving flags.
EU leaders have already made it clear that a "No" vote would be interpreted not as a mandate for better bail-out conditions, but a message that Greece no longer wanted to be part of the eurozone.
The country's banks, which are almost empty already, will collapse imminently unless the European Central Bank agrees to extend an emergency financial lifeline.
Despite the possibly ruinous consequences of the vote, crowds celebrated on the streets
Many ECB officials are reluctant to do so, given that the country is now effectively insolvent. But there are fears of empty shop shelves and hospitals running out of medical supplies if they do not.
One Greek official warned of a "humanitarian disaster" if Greece's financial system was set adrift. The country's banks were shut all last week to prevent a run on the country's currency, and are due to reopen on Tuesday.
Syriza officials are due to arrive in Brussels for what are likely to tense emergency talks with Eurozone finance ministers, who were infuriated by the party's decision to stage the referendum.
While the Greek finance minister, Yanis Varoufakis, said that a deal could be hammered out within 24 hours, EU officials said that prospects of a new deal were far from clear.
Several of Greece's creditor nations must also get any new bail-out agreement ratified by their parliaments, which may take a dim view of yet more taxpayer's cash being diverted to Athens.
"Now one has to ask the question whether Greece would not be better off outside the euro zone," said Hans Michelbach, a German politician allied to the Chancellor, Angela Merkel. "Unfortunately, Greece has chosen a path of isolation."
He said the "No" vote provided no further justification for an easing of Greece's bail-out conditions, a point backed by senior German business leaders last night.
However, the Italian foreign minister, Paolo Gentiloni, appeared to argue for compromise. "Now it is right to start trying for an agreement again," he said.
The landmark vote marked the culmination of the increasingly bitter five-year stand off between Greece and the demands of creditors in the eurozone and the IMF.
Greece has decided emotionally, not logically. I am worried that our social fabric will disintegrate
Greek political analyst Ioannis Michalatos
It ended up being decisively resolved in just 12 hours flat, as voters from downtown Athens to remote Aegean islands returned a "No" verdict.
For those Greeks who support the Left-wing Syriza government, the vote is a symbolic victory, even if does mean leaving the eurozone.
For Yes voters, it is nothing short of disaster, dragging Greece into what they fear will be an even harsher economic wilderness than before.
If the country drops the euro, it will most likely have to start reprinting the drachma, which Greece used for more than two millennia until 2001.
While that will restore some control over its own economic policies, the price may be years of further penury as the currency tries to regain its feet.
One other likely legacy is bitter division between "Yes" and "No" voters, who blame each other for the country's economic misfortunes.
"Greece has decided emotionally, not logically," said Ioannis Michalatos, a Greek political analyst. "I am worried that our social fabric will disintegrate."
How did this happen?
With polls ahead of today showing both sides in a dead heat, today's likely 60pc majority for the No side is a big surprise. Plenty of theories abound as to why Greeks have chosen to reject the scare-mongering tactics adopted from EU officials over what the significance of a 'No' would mean.
My personal favourite theory for the swing is that it had something to do with a remarkable intervention from the IMF on Thursday. The Fund's debt sustainability analysis all but confirmed that lenders have been wrong not to provide Greeks debt relief as part of a new bail-out package. It is the issue which has divided creditors but vindicated Mr Tsipras.
Europe thrown into crisis as Greece nears euro exit after shock referendum result - Telegraph
Early results suggested that around 61 per cent of Greeks had voted to reject the deal, compared to just 39 per cent in favour, despite opinion polls saying right until the eve of polling that the result was too close to call.
The scale of the No vote took European leaders by surprise, and led to panic in the financial markets. German Chancellor Angela Merkel spoke to Alexis Tsipras, the Greek prime minister, and is due to meet the French President, Francois Hollande.
EU leaders have said that a “No” vote would see Greece crash out of the eurozone, dealing a sharp blow to Brussels' blueprints for closer European political and financial integration.
The vote was hailed as a huge symbolic victory by backers of Greece's ruling Syriza party, whose coalition of radical Leftists came to power in January on a promise to fight Brussels-imposed austerity measures.
The move sent shockwaves across Europe with financial markets braced for their worst period of turmoil since the height of the eurozone crisis three years ago.
The scale of the 'no' vote became apparent early on
David Cameron and George Osborne, the Chancellor, will hold an emergency meeting to discuss how to deal with the Greek crisis and ensure that Britain's economic recovery is not adversely affected.
The Prime Minister is on Tuesday expected to attend a summit meeting of EU leaders in Brussels as they discuss how to prevent Greece's possible exit from the eurozone causing economic turmoil across the continent.
The Chancellor and Prime Minister have in recent weeks been holding regular meetings to discuss contingency plans in the event that Greece leaves the eurozone.
Officials have been discussing measures to ensure that British ex-patriates in Greece, thousands of whom are pensioners, as well as UK tourists are protected.
Mr Osborne has also repeatedly warned that the British economy will be hit if Greece leaves the eurozone.
Unfortunately, Greece has chosen a path of isolation
Hans Michelbach, political ally of Anglea Merkel
http://twitter.com/intent/tweet?tex...um-result.html?WT.mc_id=tmgoff_pq_tw_20150423
Senior figures in the Government believe that it could strengthen Britain's negotiating hand ahead of the in-out referendum because the EU will be reluctant to risk losing another member if Greece leaves the bloc.
However, there are fears that chaos in the EU if Greece leaves the eurozone could strengthen the hand of eurosceptics pushing for a British exit.
In Athens, a festival atmosphere prevailed in front of the parliament in Syntagma Square following the result, with "No" campaigners blowing whistles and waving flags.
EU leaders have already made it clear that a "No" vote would be interpreted not as a mandate for better bail-out conditions, but a message that Greece no longer wanted to be part of the eurozone.
The country's banks, which are almost empty already, will collapse imminently unless the European Central Bank agrees to extend an emergency financial lifeline.
Despite the possibly ruinous consequences of the vote, crowds celebrated on the streets
Many ECB officials are reluctant to do so, given that the country is now effectively insolvent. But there are fears of empty shop shelves and hospitals running out of medical supplies if they do not.
One Greek official warned of a "humanitarian disaster" if Greece's financial system was set adrift. The country's banks were shut all last week to prevent a run on the country's currency, and are due to reopen on Tuesday.
Syriza officials are due to arrive in Brussels for what are likely to tense emergency talks with Eurozone finance ministers, who were infuriated by the party's decision to stage the referendum.
While the Greek finance minister, Yanis Varoufakis, said that a deal could be hammered out within 24 hours, EU officials said that prospects of a new deal were far from clear.
Several of Greece's creditor nations must also get any new bail-out agreement ratified by their parliaments, which may take a dim view of yet more taxpayer's cash being diverted to Athens.
"Now one has to ask the question whether Greece would not be better off outside the euro zone," said Hans Michelbach, a German politician allied to the Chancellor, Angela Merkel. "Unfortunately, Greece has chosen a path of isolation."
He said the "No" vote provided no further justification for an easing of Greece's bail-out conditions, a point backed by senior German business leaders last night.
However, the Italian foreign minister, Paolo Gentiloni, appeared to argue for compromise. "Now it is right to start trying for an agreement again," he said.
The landmark vote marked the culmination of the increasingly bitter five-year stand off between Greece and the demands of creditors in the eurozone and the IMF.
Greece has decided emotionally, not logically. I am worried that our social fabric will disintegrate
Greek political analyst Ioannis Michalatos
It ended up being decisively resolved in just 12 hours flat, as voters from downtown Athens to remote Aegean islands returned a "No" verdict.
For those Greeks who support the Left-wing Syriza government, the vote is a symbolic victory, even if does mean leaving the eurozone.
For Yes voters, it is nothing short of disaster, dragging Greece into what they fear will be an even harsher economic wilderness than before.
If the country drops the euro, it will most likely have to start reprinting the drachma, which Greece used for more than two millennia until 2001.
While that will restore some control over its own economic policies, the price may be years of further penury as the currency tries to regain its feet.
One other likely legacy is bitter division between "Yes" and "No" voters, who blame each other for the country's economic misfortunes.
"Greece has decided emotionally, not logically," said Ioannis Michalatos, a Greek political analyst. "I am worried that our social fabric will disintegrate."
How did this happen?
With polls ahead of today showing both sides in a dead heat, today's likely 60pc majority for the No side is a big surprise. Plenty of theories abound as to why Greeks have chosen to reject the scare-mongering tactics adopted from EU officials over what the significance of a 'No' would mean.
My personal favourite theory for the swing is that it had something to do with a remarkable intervention from the IMF on Thursday. The Fund's debt sustainability analysis all but confirmed that lenders have been wrong not to provide Greeks debt relief as part of a new bail-out package. It is the issue which has divided creditors but vindicated Mr Tsipras.
Europe thrown into crisis as Greece nears euro exit after shock referendum result - Telegraph
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