Thousands of protesters gathered at Syntagma Square in Athens on Tuesday, rallying in support of a pro-European Union "Yes" vote in this Sunday's referendum on budget and reform proposals.
The European Commission has blocked Greece's access to $8.1 billion of bailout funds until the country agrees to financial reforms including raising its retirement age and raising taxes on hotel stays. On Sunday, Greeks will vote on whether to accept the reforms or not.
Pro "YES" rally in front of parliament shouting "Yes! Yes!" #Greece #Greferendum pic.twitter.com/4BiohPIBEL— Nick Barnets (@NickBarnets) June 30, 2015
Rain didn't deter the crowds, who continued to rally as Greece prepares to see its bailout payments end, meaning the country will default on its International Monetary Fund loan. Greek finance minister Yanis Varoufakis confirmed earlier today the country would not be making the €1.6 billion payment ($1.79 billion).
BREAKING: Greek finance minister says Greece will not pay the IMF on Tuesday.— Reuters Top News (@Reuters) June 30, 2015
By refusing to agree to terms set forth by the European Commission, whose demands include tax and pension reforms, reforming the labor market and setting a new minimum wage, Greek government officials are preventing the country from receiving its last bailout payment of €7.2 billion ($8.1 billion). With very little money left available, Greece has had to implement restrictions on cash withdrawals and close banks.
The Greek government, including Prime Minister Alexis Tsipras, has called for a "no" vote on the referendum, arguing that the European Union's financial conditions are humiliating and that they would prolong the country's financial woes. The referendum has, to some European leaders, also become a de facto vote on the country's membership in the European Union, though Tsipras insists he wants the country to remain part of the EU while suggesting he would resign in the wake of a "yes" vote.
The institutions insist on ideological measures w/no financial benefit, e.g., collective bargaining agreements. #ert #Greece #Greferendum— Alexis Tsipras (@tsipras_eu) June 29, 2015
The power is in the people's hands: Greek people will vote #OXI / NO to submission, unemployment, migration of young people #ert #Greece— Alexis Tsipras (@tsipras_eu) June 29, 2015
The eurozone's top official, Jeroen Dijsselbloem, said earlier today that the 19 finance ministers of the currency union will have a teleconference Tuesday evening to assess the latest proposals from Athens to keep the bailout negotiations going. German chancellor Angela Merkel said her country will refuse to negotiate until Sunday's referendum is held.
BREAKING: Merkel says Germany refuses to consider a third bailout package proposed by Athens before Sunday's referendum in Greece.— dpa International (@dpa_intl) June 30, 2015
There may yet be an agreement reached, but it would not happen until Wednesday at the earliest. An EU official says that Greece's creditors did not agree Tuesday on a new bailout deal or extension for Greece and will instead, starting Wednesday, focus on a new plan for the country.
The official, who spoke to the Associated Press only on condition of anonymity because the announcement was not official, said "clearly no agreement tonight. They will reconvene tomorrow to discuss a follow-up agreement."
#Greferendum official website launched http://t.co/S2BfZARXZ2— Alberto Nardelli (@AlbertoNardelli) June 30, 2015
Those who support the referendum argue that remaining intertwined with the EU will lead to more long-term financial stability as well as allowing Greeks to hold jobs based outside of the country and thus avoid contributing to Greece's staggering unemployment rate.
Χαμός, παρά την βροχή... Και τους κεραυνούς!!! pic.twitter.com/0ZI0FKtNu0— Dimitris Panos (@DimPan) June 30, 2015
Supporters also point to past corruption in Greece's government. One such supporter recently told The Guardian:
“We got ourselves into this situation. We have a history of corruption and graft and, unfortunately, one government after the other over the past 40 years has driven us to where we are now...
“But our European partners supported us when we needed it. The terms weren’t perfect; I’d have liked more focus on investment, less on austerity. But we are still way better off staying in the euro on an imperfect deal than leaving.”
Absolutely massive number of people in Athens for pro-EU protest. Feels bigger than anti-austerity demo last night. pic.twitter.com/akrUkTb7Jv— Jim Waterson (@jimwaterson) June 30, 2015
Additional reporting by Heidi Moore
The Associated Press contributed to this report