Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Would a referendum end the Greek crisis?

According to Capital Economics, a public referendum could help to break the current deadlock between Greece and its creditors. But it might only be a short-term solution and much could depend on its precise purpose and phrasing. 

Whatever the timing and purpose of a referendum it is not clear that the result can be taken for granted. Although opinion polls suggest that a majority of Greeks would accept more conditions in order to stay in the euro.

In that sense, negotiations over just how a referendum should be phrased could presumably be just as difficult and protracted as those over Greece's bailout payment. And the mere possibility that a referendum results in a Greek exit from the euro could make the latter more likely by heightening market pressures and prompting further outflows of deposits from Greek banks. 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.