Next steps for Greece — the best of the blogs

The scale of the 61% to 39% victory for the No camp in Greece’s referendum on Sunday — which had asked the public to vote on whether to accept the terms offered by the country’s creditors in order to continue with its bailout programme — surprised even those who had championed rejection. The government in Athens will feel that it now has a strong mandate to pursue further negotiations with its European partners and the IMF.

However, the result does little to address the country’s economic woes with the government in Athens already in arrears to the IMF and a €3.5 billion payment due to be made to the European Central Bank on July 20. If the government fails to make that payment, it is possible that the ECB will impose sanctions on Greek banks already creaking under the pressure of capital controls imposed by Athens.

Below are a selection of some of the reactions to the referendum result and discussions of where next for Greece:

Peter Spiegel — Greece votes No — now what?

“Mr Tsipras has insisted that with the backing of his country’s voters, eurozone leaders will now be more willing to concede to Greek demands and agree a new €29.1bn two-year bailout with less onerous terms. But most finance ministers reject that assertion, and many believe that no deal will be in the offing before July 20.”

Paul Krugman — Ending Greece’s Bleeding

“Europe dodged a bullet on Sunday. Confounding many predictions, Greek voters strongly supported their government’s rejection of creditor demands. And even the most ardent supporters of European union should be breathing a sigh of relief.”

Nikos Konstandaras — Faith in the unknown

“The government’s efforts so far have not brought any improvement to the economy or to citizens’ lives, so we must conclude that this strong “no” rewards its tactics in the hope that in the end they will bear fruit. This was, in effect, a vote of confidence in the unknown.”

Yanis Varoufakis — Minister No More!

“The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.”

Anna Gelpern — Thoughts on the Greek Referendum and the Democracy Mismatch in Public Debt Crises

“Greece is only the latest and starkest example of the democracy mismatch in public debt crises, which affects political units from sovereign states to U.S. municipalities. Members of the crisis-stricken polity cede control to some mix of creditors, experts and more-or-less neutral arbiters. These outsiders become the “adults in the room,” charged with making unpopular decisions to restore solvency. Democracy gives way to “ownership,” a squishy term for popular buy-in of outside policies.”

Christopher Pissarides — Easier To Strike Deal With Varoufakis Gone

“It should be easier for Greece to strike a deal with its creditors after the resignation of Greek Finance Minister Yanis Varoufakis, according to Nobel Prize-winning economist Christopher Pissarides of the London School of Economics.”

Publication does not imply endorsement of views by the World Economic Forum.

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Author: Tomas Hirst is editorial director and co-founder of Pieria magazine and was previously commissioning editor, digital content at the World Economic Forum. .

Image:’ No’ supporters wave Greek flags as they celebrate in Syntagma square by the parliament in Athens, Greece. REUTERS/Yannis Behrakis