Brexit: Referendum results met with stunned surprise in Greece

Here is a timeline of Greek reactions as the news unfolded.

Powered by automated translation

ATHENS // The news of Britain’s Brexit result was met with stunned surprise in Greece. Below is a timeline of Greek reactions as the news unfolded.

The country, one of the weakest economies in the European Union, is already feeling the aftereffects of the results as the Athens Stock Exchange plunged some 14 per cent in the wake of the news, with banks down by 30 per cent.

Nick Malkoutzis, editor of the English version of Kathimerini, one of Greece's major newspapers, and editor of Macropolis.gr said that the result marked the beginning of a period of prolonded uncertainty for the EU. "In this environment, you don't want to be isolated politically or to have a fragile economy. Unfortunately, Greece fits the bill in both cases."

The Greek prime minister Alexis Tsipras called the referendum a “wakeup call” and a “negative development for the European Union. “The arrogant words of technocrats angered people. We need progressive reforms to raise a wall against Europskepticism,” he said.

The Syriza MEP Dimitris Papadimoulis said: “The Britons decided to endorse the notion of xenophobia and isolation.”

Of immediate concern among analysts in Greece was the impact of Brexit on the country’s vital tourism sector, as the sterling plummeted to historic lows. Britons have long made up some of the largest visitor numbers to Greece. With the sterling bringing reduced spending power across the European continent, it remains uncertain whether the British love affair with Greek holidays will continue after Brexit.

Here is how Athens reacted as the shock result became clear:

All times UAE

3.20pm

Greece’s prime minister Alexis Tsipras has finally broken his silence on the outcome of the UK’s referendum, calling it a “negative development” for the European Union, and urging a “fresh vision” for Europe.

“The outcome of the referendum should act as a wake-up call for the sleepwalker who is heading for the abyss,” he said.

“The arrogant words of technocrats angered people. We need progressive reforms to raise a wall against Europ-scepticism.”

Stocks on the Athens Stock Exchange continued their downward slide throughout the day, with banks down by around 30 per cent. The effects of the Brexit were particularly felt on the Greek exchange due to the greater influence by credit sector stocks which have been badly impacted by market turbulence following the UK referendum result.

1.29pm

Dimitris Papadimoulis, the Syriza MEP: “The Britons decided to endorse the notion of xenophobia and isolation, preferring to avoid fighting inside Europe to change political and economic balances in favor of economic and social convergence.

“This huge development in Great Britain and the wider repercussions it engenders, put additional challenges for Greece: political and financial stability, sincere and productive political debating, decisive implementation of a growth-led agenda are even more indispensable for the country. In addition to that, there is a growing need for joint actions to achieve sustainable debt relief and lower primary surpluses after 2018.”

1.20pm

The Greek economics news site Capital.gr, is reporting the immediate impact of what it has dubbed the “British Armageddon for Markets” on Greek markets.

The Athens Stock Exchange immediately fell upon opening with news of the Brexit. Specifically, the Greek Index recorded a loss of 13.38 per cent to 532.27 points. Turnover was at €22.5 million (Dh416.9m) and trade volume at 54.5 million units.

The FTSE 25 index recorded a loss of 16.4 per cent to 1,433.66 points, while the banking index fell 29.8 per cent to 724.87 points.

At the time of announcing the data, the General Index of the exchange recorded its second-largest one day fall since the start of the crisis, beaten only by the reopening of the stock exchange after last summer’s extended bank holiday.

12.10pm

Nick Malkoutzis, editor of the English version of Kathimerini, one of Greece's major newspapers, and editor of Macropolis.gr: "The result of the UK referendum marks the beginning of what will probably be a prolonged period of uncertainty in the EU, possibly followed by further unsettling developments. In this environment, you don't want to be isolated politically or to have a fragile economy. Unfortunately, Greece fits the bill in both cases. It's economy is incredibly vulnerable to external shocks and the bitter process of agreeing and implementing bailouts over the last few years has damaged relations between Athens and the eurozone.

“A decrease in the number of British tourists visiting Greece as the result of the value of the pound dropping, or wider trade complications have the potential to knock Greece off course in terms of meeting its bailout targets. If the political climate in the eurozone after Brexit is one of retrenchment rather than deeper integration, Greece will find it hard to argue its case when asking for slack from its lenders or for meaningful moves with regard to debt relief. The result in the UK has undoubtedly made things much trickier for Greece.”

10.05am

One of the EU’s most fragile economies braces for the fallout from Britain’s referendum results.

Nick Barnets, a journalist with the independent news initiative Athens Live: "I think many here in Greece will be watching very closely to see what will happen following a win for Leave in the British referendum, and whether the result of this really will be respected in the end, unlike the referendum we had last year." he said.

“Many here are more concerned about the effect Brexit will have on our economy that’s still struggling tremendously, and whether this will mean Germany being even more powerful with the loss of Britain in the EU affecting us negatively.”

In the build-up to the referendum, the impact of Brexit on the Greek economy was outlined by Nick Malkoutzis, editor of economics and political analysis website Macropolis. In an opinion piece for the English version of the Kathimerini newspaper, he wrote: “It’s clear that in Greece’s case, any deterioration in exports to the UK or the number of visitors coming over would be a substantial blow to its fragile economy. The IMF has made calculations on what Brexit could cost other EU economies and estimates it could shave close to 0.5 per cent off Greek GDP under the adverse scenario. The decline in output across the EU is seen at 0.2 to 0.5 per cent of GDP, with Malta, Ireland, Cyprus, the Netherlands and Belgium suffering the most.”

8.46am

The Guardian's Greece correspondent, Helena Smith: "If Brexit comes to pass it will be the result of a protest vote born of the great wells of discontent first seen in Greece; the great irony is that 'ordinary people, the decent people' who have won this victory in the words of UKIP leader Nigel Farage, will now stand to lose the most. the prospect of Brexit begetting Grexit will go up exponentially if current predictions hold. Watch this space!"

business@thenational.ae

Follow The National's Business section on Twitter