Analysts: Greek government’s post-referendum future unsure

Whether Greeks decide in Sunday’s referendum to accept their lenders’ bailout deal or reject it, the government’s hold on power may be shakier than its brash prime minister has calculated, analysts say. Prime Minister Alexis Tsipras is banking on fellow Greeks to deliver a resounding “no” in the popular vote that he believes will give him strong leverage in his negotiations with creditors to swing a softer bailout deal for a country ravaged by years of harsh austerity, deep recession and crushing poverty. A win for the No campaign, the reasoning goes, could also furnish Tsipras with an endorsement for his five-month rule and allow his government to consolidate — and extend — its grip on power. That may not be the case, analysts say, since a “no” vote could still plunge Tsipras’ position into uncertainty if negotiations drag on with lenders who see such the outcome as a Greek snub of the euro.

A deteriorating import-dependent economy will provoke a rapid decline in public support for the government and fresh elections may become inevitable, but this will take time.

Dimitri Sotiropoulos, political science professor at the University of Athens

Meanwhile, Greece hurtled Saturday towards a crunch bailout referendum, as anxious families unnerved by the country’s uncertain outlook rushed to stock up on food. On the eve of the vote that could also make or break the radical-left government, Greeks were spooked by rumors that capital controls were leading to food and medicine shortages, and questions were being raised on when the country’s banks would re-open. Many businesses said they had been forced to ask workers to take unpaid leave, some shops were refusing card payments in an effort to hoard cash and there were reports of companies paying workers in IOUs valid in local supermarkets.

I’ve heard shops are running out of flour, sugar and salt. I’m really worried, how will we manage if we can’t get to our money and there’s no food to buy?

Lena Antoniou, a 35-year old mother of two, told AFP

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