EU awaits with trepidation as Greeks vote in crucial referendum on bailout question

Greeks voted on Sunday in a critical bailout referendum, with opinion polls showing people evenly split on whether to accept creditors’ proposals for more austerity in exchange for rescue loans, or defiantly reject the deal.

Greek Prime Minister Alexis Tsipras is gambling the future of his five-month-old left-wing government on the quick poll – insisting that a “no” vote would strengthen his hand to negotiate a better deal with the country’s creditors and saying “yes” would mean capitulating to their harsh demands.

German Chancellor Angela Merkel and other EU leaders awaited with trepidation the outcome of the referendum  that is already dividing opinion in Europe and could even shape its future.

However, the head of the European Parliament said on Sunday that Europe would not “desert” the people of Greece  regardless of the outcome of the referendum and may provide it emergency loans.

Martin Schulz told Germany’s Welt am Sonntag newspaper that the Athens  government had manoeuvred the heavily-indebted country “into a dead end”.

“Perhaps we will have to give emergency bridging loans to Greece so that  public service can be maintained and needy people get the money they need to  survive. For that, money would be available short term in Brussels," said Schulz, but warned this would not be a lasting solution.

The Greek opposition accuses Tsipras of jeopardising the country’s membership in the 19-nation club that uses the euro and says a “yes” vote is about keeping the common currency.