Czech economists say Greek “No” will worsen country’s negotiating position

The Greek "No" in Sunday’s referendum will not improve the negotiating position of the government of Alexis Tsipras, according to Czech economists. David Marek, from Deloitte, said the "No" vote was a sad result. The Greek government and citizens are mistaken if they believe that by rejecting the bailout terms they will achieve softer conditions, Marek said, adding that the opposite is true. Marek said there is only one alternative to the rescue plan - the Argentinian path, the state declaring itself bankrupt, high inflation and lowering of the living standard. Lukáš Kovanda, from the Roklen financial group, said the position of the European Central Bank in providing cash for Greece would most likely worsen due to the "no" vote, which considerably increased the possibility of Greece leaving the euro zone. If the ECB decides that the guarantees that Greek banks provide in exchange for the loans are not sufficient, a banking collapse is likely to come and Greece will have to issue its own currency, even if only as a temporary alternative to the euro, Kovanda said.