Implications of Greek referendum unclear

On his 10-year trip home, the Greek hero Odysseus at one point had to steer his ship and crew down a narrow stretch of water menaced on opposite sides by two sea monsters, Scylla and Charybdis.

The Greek people are in similar dire straits as they prepare to vote on a future in which they face two painful prospects: the slow grind of years more of austerity cuts or the country’s potentially catastrophic exit from the euro.

The question is whether their vote on Sunday can help them escape either. “Yes’’ to more budget cuts in exchange for a financial aid package for the country? Or reject it in the hope it will not lead the country out of the euro?

The referendum question makes no reference to Greece’s future in the currency union. It is on a set of proposals that European creditors say they have withdrawn following the failure to forge a deal with Greece before an end-June deadline.

For the radical left-led Greek government, the proposals were unacceptable. It’s urging a “no’’ vote and says that will have no impact on Greece’s euro status.

Here’s a look at the events that each vote might trigger.

IF THE PEOPLE SAY ‘NAI’

A “yes’’ vote backing the reform proposals creditors had made would likely see Greece turn immediately to talks on a new rescue package. Whether that leads to a swift deal that might allow Greece to reopen its banks and restore a semblance of normality to the life of citizens and tourists is another question.

Much would likely depend on what happens on the political front. The government has said it will respect the verdict.

Greek Finance Minister Yanis Varoufakis has said he’ll resign in the event of a “yes’’ vote and Prime Minister Alexis Tsipras has hinted as much. If the government does not collapse, it could try to build a new coalition with other parties, Varoufakis hinted.

It’s not clear, however, if that would involve new elections. That would take time and without financial assistance, Greece would surely go bankrupt.

IF THEY SAY ‘OXI’

Despite the Greek government’s assertion that a “no’’ vote will not lead to a euro exit, most people agree it would open up more uncertain outcomes, especially if the ECB calls time on the life-support measures to Greece’s banks.

A number of European politicians, including Jeroen Dijsselbloem, the top eurozone official, have said a “no’’ vote would jeopardize Greece’s place in the euro.