FXStreet (Barcelona) – The Global Strategy Team at TD Securities, notes the reasons why the Greece referendum might be boycotted.
Key Quotes
“There is still questioning locally as to whether balloting stations will physically be ready for the referendum in just one week’s time. A delay of a few days would likely be met with further extension of the banking holiday, and as such has less impact on the market and local situation than to extend uncertainty if it is still met with relative domestic order.”
“There is also a possibility that the opposition parties decide to try and call for a boycott of the process, rather than participate. In order to be valid, the vote requires 40% of registered voters to participate. In the January election, Syriza, the Independent Greeks, and Golden Dawn combined for 47% of the electorate. These are the three parties who are supporting this referendum so it isn’t clear this strategy would be successful to invalidate the referendum though and for the opposition, this isn’t clear it would achieve anything but extended uncertainty.”
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