At a referendum ending at noon Eastern time, Greece rejected an austerity package that European leaders insisted that the country implement in exchange for continued financial assistance. With 90 percent of the vote tallied, 61 percent of voters rejected the European program.
The referendum had asked:
“Should the proposal that was submitted by the European Commission, the European Central Bank, and the International Monetary Fund at the Eurogroup of 25 June 2015, which consists of two parts that together constitute their comprehensive proposal, be accepted? The first document is titled ‘Reforms for the completion of the Current Programme and beyond’ and the second ‘Preliminary Debt Sustainability Analysis.’ ”
The essence of the debate was whether Greece should do austerity on Europe's terms — or its own. In other words, does it have to cut social spending significantly more, as the Europeans want, or can it reduce deficits by raising taxes, as the Greeks wanted?
Syriza, the leftist party that soared to victory on an anti-austerity message this year, successfully bet that Greeks would reject Europe's demands. Many thought they wouldn't, in part because while Greeks don't like the European program, they have long opposed leaving the euro zone.
But on Sunday, in definitive terms, Greece has answered that it wants to chart its own course.
Now Syriza may have a stronger hand at the negotiating table. But the party also has the burden of navigating the country through what's likely to be a painful financial and human crisis. The gamble will shape the economy of this nation of 11 million for more than a generation.