Cheers fading as Greeks face reality
After jubilant celebrations by 'No' voters, Athens returned to a reality of ATM queues yesterday and the shock news that the finance minister, champion of the victorious anti-austerity camp, had quit.
Yesterday's scenes of cheering outside parliament faded as fears spread that the country's banks could run dry within hours or days, forcing untold numbers of companies to go bust.
Those out for a coffee in the morning sunshine were worried that new efforts to strike a deal with the country's international creditors may not come in time to prevent Greece running out of cash -- or the talks could fail entirely.
"I'm very afraid we will get no cash any more in the coming days. They really have to fix it, end of this week at the latest, otherwise it's collapsing," pharmacist Lambros Vritios said of the banking system.
Capital controls imposed by the government last week mean locals can only withdraw 60 euros ($67) a day, but even that restriction -- aimed at averting financial disaster -- has not stopped a run on money.
Vritios said he had been to several ATMs but found them empty. "It's really crushing me."
CASH RUNNING SHORT
The banks are now reportedly almost depleted of cash after panicked customers rushed to hoard money in the lead-up to the referendum, which was called by Prime Minister Alexis Tsipras in a bid to break an impasse with the austerity-hungry creditors.
The Greek Banking Association said last week its members had just enough liquidity until Tuesday, when the government had promised the banks would reopen.
But Giorgos Stathakis, Greece's economy minister, told the BBC the capital controls could stay in place until Friday.
Greek banks were on the verge of collapse, he said, with its future in the euro being determined in the next 48 hours.
Greeks were divided over whether the European Central Bank would inject emergency euros into the country's banks -- or whether the country's perceived nemesis, Germany, would make them suffer.
"The situation is very confusing. I really don't know what is going to happen," said Nikos, 47, who works in a luxury watch shop and fears the referendum result may be "misunderstood" by Europe as a vote to leave the eurozone.
'HE TOLD THE TRUTH'
The news that Finance Minister Yanis Varoufakis's head had rolled to appease the country's international creditors was welcomed by some, who said his flamboyant and unorthodox ways had not helped bailout negotiations.
"Varoufakis is a revolutionary, someone very dynamic with a very important university background. But he is not a politician. He doesn't know how to negotiate," said Irene Roka.
"He had good ideas but he wasn't very diplomatic... he was very cavalier in negotiations," she said.
Sofia, 37, said she thought his exit "is going to help" reboot negotiations, despite a 'Nein' from Germany which saw the bailout referendum as a nail in the coffin of debt talks.
But Charalampos Aroutzidis, 30, said he was sorry because he liked Varoufakis. "He is not like the ones before him. He is different and he wanted the best for Greece."
Today's extraordinary summit in Brussels is expected to draw up the roadmap for Greece -- but might see it driving the country off the eurozone cliff in a Greek exit, or 'Grexit'.
NEW BAILOUT BID DISMISSED
Germany yesterday dismissed Greece's bid to clinch a quick new debt deal after the country delivered a resounding 'No' to more austerity, appearing little moved by the surprise resignation of the Greek finance minister.
Berlin said the departure of Varoufakis did not change anything.
"It is not about people but rather positions," Chancellor Angela Merkel's spokesman Steffen Seibert said, adding that there is currently "no basis to enter into negotiations on a new aid programme".
A Greek government source said Tsipras and Merkel had spoken by telephone and agreed that Athens' proposals would be presented at today's summit.
'READY TO ASSIST'
Berlin's reluctance to reopen negotiations underlined a sharp divide within Europe over the Greek crisis, with France, Italy and Spain adopting a more conciliatory tone.
Italian Prime Minister Matteo Renzi said on his Facebook page that Europe needs to "talk not only about austerity and balance sheets but about growth, infrastructure", while Spain said it was open to new negotiations for a new Greek bailout.
And although last week Greece defaulted on a 1.5 billion euro repayment to the IMF, effectively cutting them off from further financial assistance, the fund's chief Christine Lagarde said the global crisis lender was "monitoring the situation" and stood "ready to assist Greece if requested to do so".
As eurozone leaders weighed the cost of the vote, Tsipras also spoke to Russian President Vladimir Putin by telephone as Athens scrambled to restore liquidity to its battered banking system.
Despite its hardline approach to debt talks, Germany said eurozone leaders should discuss humanitarian aid for the austerity-fatigued country with widespread poverty and high unemployment.
"We must now cover their needs very quickly. The people there need help and we should not refuse it just because we're unhappy with the result of the referendum," German Economy Minister Sigmar Gabriel said.
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