Austerity model ‘failed, ‘sustainable economic models only way forward’ – AD

The austerity model has failed and sustainable economic models are now required to ensure growth without stifling people’s right to a decent quality of life, Malta’s Green Party said.

"The Greek people have decided NO in the 'austerity' referendum and their will must be respected.  As things stand, the Greek people will never be able to repay their loans,” AD chairperson Arnold Cassola said.

"At this stage, therefore, what the EU and the International institutions must now do is to facilitate all ways and means for the Greek people to get back on the road to decent living, in respect of full dignity, ensuring that pensions are paid, jobs are created and people are given breathing space to allow them to rebuild the economy.

"The austerity model has fully failed. The international community must move towards more sustainable economic models which allow for growth without stifling people' s rights to dignity and to a decent quality of life."

But all eyes are currently on the European Central Bank to see whether it will increase the flow of emergency aid to the Greek banks.

The ECB, reluctant to act before the EU leaders and finance ministers meet in Brussels, has already pumped €89 billion into the banks but halted its emergency liquidity assistance pending the referendum.

Euro European Commissioner Valdis Dombrovskis said the Commission took note of the referendum result: “To negotiate we need a mandate from the Eurogroup.”

“The stability of the Eurozone is not in question … we are willing and able to ensure financial stability by all available means,” he reassured as European stocks and the euro fell after the Greeks’s overwhelming rejection of the bailout terms.

A statement by the Eurogroup showed that the 19 finance ministers of the euro area “expect new proposals from the Greek authorities”.

Since 2010, €184 billion have been disbursed from GLF and EFSF.