July 06--REPORTING FROM ATHENS -- Greece entered an even more volatile phase of its financial crisis early Monday after voters resoundingly voted no on a referendum on a European bailout plan whose rejection could now determine the country's financial fate in the short term and its role in Europe in the long term.
The vote was a strong rebuke to European Union leaders who had warned that the plebiscite was, in effect, a vote on whether Greece wanted to keep on using the euro as its currency.
With more than 99% of precincts reporting at 2:43 a.m. local time Monday (4:43 p.m. Pacific time Sunday), the "no" camp was ahead by 61% to 39%, according to the Greek Ministry of Interior.
As the scale of the "no" victory becomes clear, the question immediately shifts to whether, and how quickly, Greece's European partners are prepared to resume negotiations with Athens. Relations between the two sides have deteriorated badly over the last few weeks, especially after Greek Prime Minister Alexis Tsipras broke off talks at the end of June and called Sunday's snap poll on bailout proposals that have technically since expired.
The president of the European Council quickly scheduled a Tuesday evening summit to discuss the situation. The leaders of Germany and France had already planned to meet in Paris on Monday evening to discuss the crisis. Both nations warned Greeks before the referendum that the poll was, in effect, a vote on whether Greece wanted to remain in the Eurozone.
Tsipras cheered the referendum's outcome, but he portrayed the "no" vote as a desire for Greece to stay in the Eurozone on its own terms. The vote "did not answer the question 'in or out of the euro,'" he said. "The Greek people today answered the question: Which Europe do we want? And it answered bravely: We want the Europe of solidarity and democracy."
A pressing issue will be the reaction of the European Central Bank, which has been propping up the Greek banking system for months with emergency funding. If the ECB decides at a meeting Monday to end that support, Greece's banks will quickly run out of cash, business will grind to a halt and basic supplies could start to dwindle on store shelves.
Banks have already been closed since Monday, and residents have been allowed to withdraw only 60 euros (about $67) a day from ATMs. Greek officials insist that the banks will reopen Tuesday, but analysts doubt this can happen unless the ECB maintains or increases its assistance.
The Greek government is also nearly out of cash. If it cannot pay its debts -- a major repayment is due July 20 -- Athens could be forced to introduce a parallel currency and eventually leave the Eurozone. However, analysts said this was not an immediate threat.
The size of the projected victory for the "no" campaign came as something of a surprise after a flurry of opinion polls showed an almost dead heat. A number of voters were undecided, however, and could have made the difference.
Surveys showed that young people voted "no" in droves. Many said they agreed with Tsipras' contention that the bailout proposals from Greece's lenders imposed too much austerity after five years of already heavy spending cuts. The Greek economy has contracted by a breathtaking 25% since Athens began accepting emergency aid and implementing austerity measures since 2010.
"These measures would worsen the situation," said teacher Paula Andriotaki, 33.
Tsipras said a "no" victory would put him in a stronger position to demand concessions from the lenders, most of which are fellow Eurozone countries.
But Eurozone leaders have scoffed at that idea and said that a new agreement could be even more difficult now that Greece's financial situation has worsened further.
"Yes" supporters urged Greeks to join them in order to guarantee Greece's continued place among the 19 nations that use the euro. They said that membership in the wider European Union could also be at risk and that Greece cannot afford to be isolated.
The ballot itself was the subject of some criticism, because the question it asks is wordy and couched in jargon.
Moreover, the bailout deal it referred to was already technically moot. The offer from Greece's creditors expired Tuesday night, after talks between them and Athens collapsed last week over Tsipras' surprise decision to call the referendum. Creditors say that negotiations on a new agreement would have to start from scratch.
Because of the convoluted ballot question, and the competing claims of whether the real issue at stake is the future of Greece as a member of the Eurozone, many Greeks complained of confusion over just what was being asked of them.
Maria Liapi, who helped campaign for the "no" side, said she wanted to reject a bailout agreement that would bring more hardship to Greece.
"We all know now that these loans are a big weapon to use to blackmail the people," said Liapi, 57, a sociologist.
But Loukia Mitsi, 40, an unemployed teacher and mother of three, said she would vote "yes" because Greece needed to stick with the euro and not be forced to revert to its old currency, the drachma.
"My life got better with the euro," Mitsi said. "I want a European solution that is good for Greece. I want a better future, and we won't have that if we go to the drachma."
About 10 million voters were eligible to cast ballots in Sunday's referendum, Greece's first in 41 years. In 1974, the people were asked to decide whether their country should retain the monarchy; the answer then was also no.
As results of Sunday's referendum came in, Greek opposition leader Antonis Samaras, who had pushed for a "yes" vote, announced his resignation.
Special correspondent Pavlos Zafiropoulos contributed to this report.
UPDATES
4:45 p.m.: This article has been updated with latest vote totals.
2:49 p.m.: This article has been updated with the scheduling of a Eurozone summit, comments by Greek Prime Minister Alexis Tsipras and the resignation of the Greek opposition leader.
12:16 p.m.: This article has been updated with latest vote totals, background.
11:39 a.m.: This article has been updated with government projecting 'no' vote will win.
9:44 a.m.: This article has been updated with polls closed, some news channels giving slim edge to 'No' campaign.
This article was originally posted at 2:18 a.m.
