Too close to call as Greek referendum continues

A woman holds the flag of Greece at the 'Greek solidarity festival' in Trafalgar Square, London, Britain, July 4, 2015. The event was held in support of the people of Greece and the cancellation of debt, ahead of their referendum on Sunday. [Photo/Agencies]

Greeks walked to polling stations on Sunday to cast 'No' or 'Yes' votes on whether to accept the bailout conditions of their international creditors, while the government urged them to say 'No'.

As the hours passed no final result was available. Greeks believe the referendum will make a big difference to the worsening situation in their country, insisting that the government needs “formula change” and seeks help from strategic partners such as China.

"If the 'No' vote prevails (as I personally think it will, to my enormous disappointment), Greece risks finding herself at loggerheads with our European partners," Constantine Papadopoulos, former Minister for International Economic Relations of Greece told China Daily via email.

The implications for China-Greece relations will be more significant in the case of a 'No', Papadopoulos said."If we don't reach an agreement with our partners and the country goes bankrupt, a return to the drachma will be almost inevitable, in which case not only will our trade with China shrivel up but Chinese investments in Greece will lose a very large part of their value".

If there should be a 'Yes' vote, Papadopoulos said the implications for China-EU relations will not be significant as the euro will continue to exist as a reliable currency, though it may become weaker for a while, which should give the EU a competitive advantage vis-à-vis China.

Chinese Ambassador to Greece Zou Xiaoli has also met Greek officials, showing China's support for Greece remaining in the euro zone and looking forward to an amicable solution between Greece and its creditors. 　　

Christos Vlachos, managing partner at Silky Finance, a consultancy company in Athens, was not voting on Sunday as he was on business trip and insisted the result would make no difference to Greece.

"But in my mind, I vote 'Yes'," said Vlachos during a telephone interview from a Greek island.

If the 'Yes' camp should prevail, Greece needs to implement structural reform and continue austerity measures agreed with the International Monetary Fund, European Commission and European Central Bank and then the country and euro zone will be return to some degree of stability. The Greek economy may register a steady but slow recovery while it is kept within the euro zone.

Vlachos said the EU, US and all opposition parties, with the exception of Golden Dawn, were calling for a 'Yes' vote as they are afraid a 'No'would result in Greece leaving the euro and possibly the EU altogether.

"Eighty-five percent of Greeks want to stay in the euro, but the latest polls suggest that the 'No' vote is slightly ahead," he said.

Vlachos has warned that the Greek economy has slipped back into recession and if the present government is to survive it will need new friends that will help it economy recover.

"The privatization of the port of Piraeus that COSCO is very keen to acquire would give a strong positive sign to the rest of the world," he said.

Vlachos said Greek businesses have shown their appreciation that Chinese Premier Li Keqiang pledged to support a "united EU, prosperous Europe and strong euro" during his visit to Brussels last week.

"I am impressed that he said the Chinese government would continue to buy euro bonds and I hope China could invest in more Greek bonds as well," he said. "Greece urgently needs help from its partners".

But he still said that Greece is entering uncharted territory which ever way the vote went and the next couple of weeks will be critical.

" With banks closed in the midst of the tourist season and a general election looming the risks Greece is facing are huge," he warned.

But Xiao Diandian, 30, a Chinese tour guide in Athens said Greeks was more interested in down to earth matters. "My concern is whether I can be paid or not while some tourist groups have been canceled and banks are closed," Xiao said.