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Austerity Reforms May Turn Greece Into Economic Colony – Defense Ministry

According to deputy head of the Greek Ministry of Defense Сostas Isychos, Greece would turn into an “economic colony” of Europe if Athens were to accept the terms, adding the upcoming bailout referendum wouldn't be related to the Grexit and the exit from the European Union.

Greek Prime Minister Alexis Tsipras (bottom R) acknowledges applause during a parliamentary session in Athens, Greece June 28, 2015 - Sputnik International
Greek Parliament Authorizes Referendum on Bailout Program
ATHENS (Sputnik) – The bailout proposal Greece's lenders made would turn the country into an “economic colony” of Europe if Athens were to accept it, Greek Deputy Defense Minister Сostas Isychos told Sputnik.

“If they [the lenders’ positions] were to be accepted, it would mean that Greece would become an economic colony of the south within Europe, something unacceptable to our history, to our national pride and sovereignty,” Isychos, who is also the co-chair of the Russian-Greek Intergovernmental Committee, said.

Athens announced a July 5 referendum for voters to decide whether to accept the new bailout deal offered by the creditors. Greek Prime Minister Alexis Tsipras backs a “No” vote in next Sunday's referendum and argues that a rejection by the public of international creditors' proposals will strengthen Athens for future talks unlocking a bailout package.

However, the Greek people won't be asked about the country’s potential exit from the Eurozone or the European Union.

People line up - Sputnik International
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According to Сostas Isychos, the question the Greek people will be asked at the bailout referendum will not be about the country’s potential exit from the eurozone or the European Union.

“No, I would say no. That is a different political question of great magnitude and it has its good and bad sides, its ups and downs, we could say, but this referendum is completely detailed on the ultimatum that was presented,” Isychos said when asked whether the referendum would be related to the so-called Grexit and the exit from the European Union.

Athens guarantees the security of savings to all clients of Greek banks, as they shut down prior to the referendum on the country’s bailout deal, Сostas Isychos said.

Greek Prime Minister Alexis Tsipras looks at his watch as he delivers a speech during a parliamentary session in Athens, Greece in this June 28, 2015 - Sputnik International
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Alexis Tsipras confirmed on Sunday that Greek banks would be introducing restrictions on various transactions, as well as temporarily closing local banks after the European Central Bank (ECB) instituted measures to keep the level of emergency liquidity assistance to the Greek bank sector unchanged.

"There is a total guarantee for all clients on their money within the banks within the banking system," Isychos said, adding that "there is no panic on behalf of the Greek people, which is a sign of maturity and a sign of a political, and a social, and a national response to the possibility."

According to him, web banking and all ATMs are open, and there is a control of capital flow to all the clients of the banks which remains at 60 euros per day amounting to 1,800 euros per month. At the same time, bank transfer and ATM cash withdrawal limits do not apply to tourists in Greece.

Greece is currently in talks with the International Monetary Fund, the European Union and the European Central Bank to resolve the country’s debt issue in exchange for austerity measures in the form of economic and social reforms. The breakdown of Saturday’s round of bailout talks between Athens and its international creditors increased fears that Greece is heading toward default and a departure from the eurozone. The deadline for reaching the deal is on Tuesday.

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