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Greece debt crisis: Tsipras calls on Greeks to defy 'blackmail' as nation remains divided and fearful Greece debt crisis: Alexis Tsipras calls on a divided and fearful nation to defy 'ultimatums and blackmail' ahead of referendum
(about 2 hours later)
The Greek Prime Minister Alexis Tsipras has urged voters to reject "blackmail" ahead of Sunday's bailout referendum. Greek and European politicians are still wrestling over what the consequences of Sunday’s referendum on an EU bailout package will be for the country, as millions of voters were left with 24 hours to decide whether to say Yes or No to a question that is almost impossible to understand.
In a brief TV address Mr Tsipras told the nation: "I urge you to say no to ultimatums, blackmail and the campaign of fear." As campaigns on either side of the divide held their final rallies in Athens, the head of the eurozone finance ministers accused the Greek Prime Minister, Alexis Tsipras, of “deceiving his population” by claiming that a No vote in the referendum will help put the country back on track.
The PM also advised Greeks not to give in to the "sirens of scaremongering" after EU leaders warned a "No" vote could result in Greece leaving the Eurozone. Clashes between youths and police broke out in the Greek capital as Jeroen Dijsselbloem rejected the idea promoted by Mr Tsipras’s party that a No vote would address the issue of debt relief and force Brussels back to the negotiating table. “We are not talking to the government any more,” Mr Dijsselbloem said.
Opinion polls indicate a tight race between both camps, signs of an increasingly polarised Greek society. According to the latest survey to be published, the “yes” camp in the upcoming referendum has a narrow lead ahead of Sunday’s vote. Despite Tsipras's assurances, many Greek people are not certain whether Sunday’s referendum is a vote on whether Greece will remain in the euro or not (Reuters) “They have chosen an extremely risky route – now we’re waiting for the result of the referendum.”
Despite Tsipras's assurances, many Greek people are not certain whether Sunday’s referendum is a vote on whether Greece will remain in the euro or not (Reuters) His colleague Jean-Claude Juncker, President of the European Commission, said the Greek negotiating position would be “dramatically weakened by a No vote” and added: “Even if there were a Yes vote, we would still have to face difficult negotiations.”
According to Alco polls published in Ethnos newspaper which surveyed some 1000 people across the country, 41.5 percent of Greeks would support the new bailout measures to avoid an exit from the Eurozone. The “No” camp which follows with 40.2 per cent doesn’t unanimously back an exit from the Eurozone. According to the same research, less than 2 out of 10 Greeks want the country to go back to its national currency, and 75 per cent of Greeks want the Euro. Mr Tsipras still maintains Sunday’s referendum is not a vote on whether Greece will remain in the 19-nation eurozone and said he believed Greece would keep the euro as its currency regardless of the outcome. He urged voters to ignore the “sirens of scaremongering” elsewhere in Europe, declaring: “I urge you to say no to ultimatums, blackmail and the campaign of fear.”
When the Greek PM addressed the nation he used a recently released IMF report which calls for a debt haircut to argue his cause. “The report is a vindication,” said Mr Tsipras. “This report was missing from the institutions’ proposal [and] vindicates our choice to not accept a deal which bypasses this crucial debt issue.” The leader of Greece’s main opposition party says a No vote would drastically weaken the country’s negotiating position with its creditors. 
Former friend and political rival Andreas Papadopoulos. who first met the Greek leader in 2000 said the young leader’s insistence to hold a referendum stems from his ideology and lack of plan. “He’s trapped in his ideology, incompetence and complete lack of plan. That’s why the government is completely shifting from one plan to another,” he said. Antonis Samaras said that all of Europe would perceive a No vote as a rejection of the euro itself and would result in Greek banks staying closed for even longer, despite the government’s vow they will reopen Tuesday.
Mr Samaras also rejected Mr Tsipras’s claim that a deal with creditors could be hammered out within 48 hours of the referendum.
The fast-tracked vote announced last week which has polarised Greek society was given last-minute legal authority on Friday by the country’s highest court. 
The Council of State, Greece’s highest administrative court, rejected an appeal which asked  for Greece’s referendum to be ruled unconstitutional. After the court ruling, its president Nikos Sakellariou said, “the referendum will proceed normally”.
According to the latest polls published in the Greek media there is nothing between the Yes and No camps. Those who support the bailout package, 41.5 per cent, believe a Yes vote will keep them inside the eurozone and keep them within Europe. Those who reject the Brussels package, estimated to be 40.2 per cent, still believe their place in the eurozone may be salvaged.
According to polls which surveyed some 1000 people across the country, 41.5 percent of Greeks would support the new bailout measures to avoid an exit from the Eurozone (AP) The complexity of the question written on the referendum ballot paper matches the complexity of the outcome.
The chair of the National Bank of Greece, Louka Katseli, warned that banks only have enough money left till Monday morning, after which it would be down to the European Central Bank to decide what happens next.
The Greek Prime Minister addressed the nation again on television earlier, using a recently released IMF report which calls for a debt “haircut” to argue his cause. “The report is a vindication,” he said. “This report was missing from the institutions’ proposal [and] vindicates our choice to not accept a deal which bypasses this crucial debt issue.”
A former friend and political rival, Andreas Papadopoulos, who first met the Greek leader in 2000, explained Mr Tsipras’s insistence on holding a referendum.
“He’s trapped in his ideology, incompetence and complete lack of plan. That’s why the government is shifting from one plan to another,” he said.
“He’s smart and has morals but he has never lived abroad so he doesn’t understand how other countries work and has no examples. He’s caught in the microcosm of Greece.”“He’s smart and has morals but he has never lived abroad so he doesn’t understand how other countries work and has no examples. He’s caught in the microcosm of Greece.”
His colleagues, however, have another vision of the young leader. “He’s not gambling it all, he’s a realist who refuses to implement policies that will mathematically reduce the quality of life of pensioners and Greeks overall,” said Costas Zachariades, a SYRIZA official who also met Tsipras back in 2000, when he signed up to the left-wing youth movement of SYRIZA’s predecessor. His colleagues however have another vision of the young leader. “He’s not gambling it all; he’s a realist who refuses to implement policies that will mathematically reduce the quality of life of pensioners and Greeks overall,” said Costas Zachariades, a Syriza official who has known Mr Tsipras since 2000, when he joined the left-wing youth movement of Syriza’s predecessor.
The capital controls and ensuing anxiety has been instrumental in the “Yes” campaign, as are fears of an exit from the Euro. On Friday afternoon, Greece’s finance minister Yanis Varoufakis, deputy Prime Minister Yannis Dragasakis held a meeting with the senior managers of six Greek lending institutions. Concerns over a haircut on deposits grew in Greece, the memories of the 2013 bail-in at the banks in neighbour Cyprus. Anxiety over the capital controls imposed over the past week has played a key role in bolstering support for the Yes campaign. Greece’s Finance Minister Yanis Varoufakis and the Deputy Prime Minister, Yannis Dragasakis, met senior managers of six Greek lending institutions on Friday. Concerns over a raid on bank deposits grew in Greece, fuelled by memories of the 2013 levy on savings imposed on banks in neighbouring Cyprus.
In an interview on Thursday, the country’s PM sought to allay those fears. "Our absolute priority is in every case to ensure the citizens' deposits in the banks and achieve a result in these negotiations as soon as possible,” Alexis Tsipras said. Greek Communist Party supporters outside the Federation of Greek Industries. They are campaigning for a "NO" vote (AFP) Mr Tsipras sought to allay those fears. “Our absolute priority is in every case to ensure the citizens’ deposits in the banks and achieve a result in these negotiations as soon as possible,” he said.
According to polls which surveyed some 1000 people across the country, 41.5 percent of Greeks would support the new bailout measures to avoid an exit from the Eurozone (AP) There is huge uncertainty over what will happen directly after the referendum result becomes known, expected to be late Sunday evening.  A No vote would leave the Tsipras administration in government but will make a deal more elusive since European officials have reportedly lost all trust in his administration.
The outcome of Sunday’s referendum will have important repercussions on Greece’s political landscape. A “No” vote is very likely to reinforce Tsipras administration in government although it will make a deal more elusive. European officials have reportedly lost all trust in his administration. If Greeks however rally behind the “Yes,” there will be developments within the SYRIZA-led government. Finance Minister Yanis Varoufakis reiterated he would resign and although the PM has also hinted he would step down, SYRIZA officials think the scenario is highly unlikely. If Greeks  vote Yes, however, Mr Varoufakis has said he would resign. However, although Mr Tsipras has hinted that he too may go, Syriza officials consider that highly unlikely unless the defeat is crushing. 
The 40-year old leader will only step down after a crushing defeat. A cabinet reshuffle though is very likely after Finance Minister Yanis Varoufakis said that in such a case he would step down. “By my own choice, I will no longer Finance Minister in such a case. I will respect the people’s verdict and won’t do anything to prevent the signing of a non-sustainable, appalling deal promoted by the institutions,” Mr Varoufakis said in an interview with local Agora newspaper. “I will respect the people’s verdict and won’t do anything to prevent the signing of a non-sustainable, appalling deal promoted by the institutions,” Mr Varoufakis said in an interview with local Agora newspaper.
In the small chance PM Tsipras resigns, the President will successively ask the country’s two main opposition leaders, conservative Antonis Samaras first, followed by far-right Nikos Mihaloliakos if the former fails, to form national unity governments. If both leaders fail to do so, then the President calls on three leaders in a last-ditch effort to form a national unity government. If the leaders disagree, a caretaker government is then appointed to lead the country until new elections are called, most likely in September, as the Parliament closes for summer recess in August. If Mr Tsipras steps down the Greek President, Prokopis Pavlopoulos, will successively ask the country’s two main opposition leaders, conservative Mr Samaras first, followed by far-right Nikos Michaloliakos, to attempt to form a national unity government. If both leaders fail to do so, then the President may call on three leaders in a last-ditch effort to form a government. If the leaders disagree, a caretaker government would be appointed until new elections are called, most likely in September.
But cracks in the coalition government have already started appearing. On Thursday, four Independent Greeks MPs from the ruling coalition openly distanced themselves from the government line saying they’ll vote for a “yes” on Sunday.
Greek Communist Party supporters outside the Federation of Greek Industries. They are campaigning for a "NO" vote (AFP)
“The presence of our country in the euro is a one-way road, not only for economic reasons but also for national reasons,” said Dimitris Kammenos. “A referendum makes sense when its conditions don’t cause [national] division,” he added, urging the government to return to the negotiating table.
Mr Kammenos said he was unaware that capital controls would ensue the referendum while others suggested Europe could force Greece out of the Euro if a “No” vote prevailed. The right-wing MPs' decision was followed by a statement from 16 retired senior military officers, including generals and admirals.
Former chiefs of the country’s national defence argued Greece’s position is inherently within Europe. “Greece is and should remain a protagonist in European affairs. Greece is Europe,” read the statement. “All Greeks must be “united above party lines and confrontation…in addressing the situation with calm and national unity.”