News Analysis: Outcome of Greek referendum suggests personal victory for Tsipras

After the Greeks voted overwhelmingly "No" in a historic bailout referendum, experts are cautious over the interpretation of the outcome by European leaders ahead of crucial summit on Tuesday.

For Loukas Tsoukalis, professor of European Integration at the University of Athens and President of the Hellenic Foundation for European and Foreign Policy (ELIAMEP), the referendum was a personal victory for Alexis Tsipras. "The result suggested that a large part of the Greek population decided to give a vote of confidence to the prime minister," he highlighted.

"Sunday's referendum has no positive impact on the Greek economy. On the contrary, it imposes certain commitments that I am not sure if Tsipras can handle in the future," Costas Melas, professor of economics at Athens's Panteion University told Xinhua.

"Uncertainty prevails. It all depends on how each part will interpret the intentions," Nikos Vettas, professor of Economics at the Athens University of Economics and Business added.

Tsoukalis explained that there are two different lines being opposed within euro zone. One group of people who interpret the "No" as no to the euro zone, represented mainly by Germany.

And the other side that believes the Greeks have made mistakes, but also has the rest of Europe, with France and Italy among its advocates.

"They see it as an opportunity for a more long lasting solution. An exit from euro zone would be a small or a big disaster for Greece, but will also have negative repercussions for Europe as well," he said.

For Greek experts, the initiatives taken from the government's part are a good sign towards propitiation with the European partners, but the lack of time is against Greek economy.

"Alexis Tsipras accelerated the negotiations with the euro zone. He called for a meeting with the leaders of the other political parties, presenting a national unity front. And, has announced a reshuffle that included the Finance Minister," Tsoukalis pointed out.

While these moves were welcomed by the majority, Melas expressed his concerns over what European partners will accept at last. "The game is not only in our area. Unfortunately, we lack allies," he told Xinhua.

With banks closed and negotiations taking more than 48 hours in order to reach a possible deal, experts warn that Greek economy cannot last long.

"If the banks stay closed for one or two weeks the effects would be disastrous on the Greek economy," Tsoukalis stressed.

An agreement in principle between Greece and its European partners is absolutely essential in order to release bank liquidity from European Central Bank (ECB) and change the situation, according to Tsoukalis.

For Melas, it is hard to close a deal soon. "ECB must be convinced that Greek really wants to negotiate," he pointed out.

As far as the new program deal is concerned, all three economists agreed that the content will have harsh measures for the Greek people.

"Political uncertainty has led to the rapid deterioration of the Greek economy which means that you need heavier program now than normal circumstances," Tsoukalis said.

"The new deal will include new funding under the terms of European Stability Mechanism which are harsher and more demanding than the previous," Melas underlined.

In regards to Greek debt, a realistic approach is needed in order to attract foreign investments, as economy is in recession, Vettas explained. Endit