Greek People Bear Brunt Of Bailout Failure

During a series of cloudless days in Athens, thousands had queued at ATMs around the city to make sure their wallets were full for a rainy day.

On Sunday evening, as night fell, a storm passed, just as news filtered out of the government’s decision.

When this round of negotiations began to secure the last disbursement of bailout cash, few imagined a day when enforced bank holidays and the closure of the Athens stock market would be considered necessary.

But now the Stability Committee has deemed it prudent to prevent too much cash from ebbing out of the Greek banking system after the European Central Bank decided not to raise the level of its assistance.

After Tuesday, the bailout conditions, which have kept the country solvent, will expire and the government will find itself in arrears, owing €1.55bn to the International Monetary Fund.

Where does it leave the young government and its troika of creditors - the European Union, the ECB and the IMF?

Frankly, none comes out of it well.

The Syriza administration has seemed to be both haphazard and rigidly dogmatic.

But the international lenders have been perceived by many to be enforcing cuts so drastic that Greece's chances of ever growing its economy seemed an aspiration for another generation.

It's obvious who will bear the brunt of this political and economic failure to secure a deal - the Greek people.

The culture may have turned a blind eye to tax evasion and backhanders, and its politicians may have been sly in their calculations to enter the single currency, but the impact of these bank controls could be enormous.

If the bank 'holiday' is extended until after the 5 July referendum, basic financial transactions could become difficult.

Even more ATM’s will disgorge their last note and credit card transactions may well be denied.

But it's also dented a nation's pride and caused a low hum of underlying anxiety.

Not in the rest of the EU.

Most economists believe enough has been done to prevent 'contagion' bringing down bigger economies previously exposed to Greek debt like Spain or Italy.

Which is why the Eurozone could afford to play this game of chicken.

Back in Greece, polls suggest support for the creditors' austerity recipe is currently dwarfing that of the government - most people want to stay in the Euro.

But if the 'yes' vote triumphs, can this left-wing government, which has so vociferously denounced the package, be the one to implement it?

Expect a reshuffle at least, another election at most.

A 'no' vote - supporting Syriza's stance - could cast the country into even more unpredictable waters.

This chapter of uncertainty will further damage confidence in this nation's ability to survive; its future within the single currency is shakier than ever.