DEMOCRACY

Greece to Hold Referendum on Bailout

Voting on creditors' demands.

A Greek referendum will decide whether or not the country's voters will accept deep budget cuts and steep tax rises that the country’s "troika" of creditors wish to impose on them in return for a new bailout. Hard left Prime Minister Alexis Tsipras went on television in Greece shortly – where it is already past midnight – to announce the referendum will take place on Sunday, July 5. It has become increasingly clear in recent days that Greece will be kicked out of the euro if it does not pay its debts to the International Monetary Fund, the European Central Bank, and the European Union. A large payment due to the IMF on Tuesday cannot be paid without a new loan. Tsipiras has refused to sign up to the troika’s demands in marathon meetings that have been taking place all week with Greece's main creditors. The current bailout deal expires on June 30 – Tuesday – leaving a huge question mark over what will happen in the intervening days. The BBC speculated that bank and capital controls would be introduced on Monday.

-Tom Sykes