Why Did Greece Just Vote ‘No’ To The European Union Deal?

Those watching media coverage about the Greek debt crisis might be asking themselves, “Why did Greece just vote ‘No’?” After all, many economists have rejected the decision as disastrous: Greeks voting “no” is voting “yes” to a wave of problems that will rock the European economy — and eventually, the world’s, they say.

But many Greeks — at least more than 60 percent, reports The Guardian — were asking the opposite question, “How could Greece vote anything but, ‘No’?” Many people in Greece see the actions of the European Union as a German-led action to keep them enslaved by a never-ending cycle of debts and loans to pay those debts and then more loans again.

A recent CNBC editorial by Peter Morici argued that Greeks saying no was standing up to culture at the EU which values economic health over that of the people who must deal with the consequences. Those arguing that a Greek vote for “yes” would have fixed the downward economic trend are not looking at what austerity has already done to the country, says Morici.

“Urging a ‘Yes’ vote, European leaders and their supporters in private institutions claim more austerity would reinvigorate the Greek economy and permit Greeks to keep the euro as their currency, but such claims simply contradict the facts. Already, the Troika, led by German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde, has imposed five years of budget cuts, higher taxes and labor market adjustments. The Greeks have endured a 25- percent contraction in GDP, 25-percent cut in private-sector wages and 25 percent unemployment.”

Not all experts are so convinced that a Greek vote for “no” is the right decision. George Marios Angeletos of MIT and Dimitri Vayanos of the London School of Economics see it as a surefire way to send Greece into a period a turmoil and uncertainty.

“Now, let’s fast-forward to the day after the referendum. What will happen if a “no” leads to Grexit? There are the likely calamities in the short run: markets will freeze and government revenue will collapse; large losses in bank deposits, wages, and pensions will follow; and any immediate improvement in the exchange rate may be dwarfed by the ongoing economic and political uncertainty. But the gravest consequences could actually be in the longer run — especially if it is in the hands of those who dream a return to the ‘good old days.'”

Although hoards of international protesters — some reaching even further than the immediately effected Eurozone — are siding with Greece, not all nationals are pleased that Greece just voted “no.” Nearly 40 percent decided to accept the terms of the deal with the European Union in the end — though if earlier polls are to be believed, many of them had a change of heart before marking their ballot.

[Image via Christopher Furlong/Getty Images]