Greek referendum: What a 'Yes' or 'No' vote would mean for Europe

On Sunday 5 July Greeks will head to the polls to vote in an emergency referendum on Greece's bailout conditions – a vote that could change Europe forever, but how has this come about, and what will the result be? In our video guide, IBTimes UK explains what impact a 'Yes' or 'No' vote would have on Greece and Europe.

Last week negotiations between Greece's government and the European Commission, the International Monetary Fund and the European Central Bank broke down after they could not come to an agreement over further cutbacks. Prime Minister Alexis Tsipras made the surprising decision to call a referendum in which the public can vote on whether to accept the creditors' terms, saying the government could not accept any further cuts without a mandate from the Greek people.

Because of this, the debt-ridden country defaulted on its debt repayment of €1.5bn, around £1.06bn to the International Monetary Fund at midnight on 1 July. Banks have been closed until 6 July with capital controls imposed that limit Greek citizens from withdrawing more than €60 a day.

The referendum has now been billed as a choice for Greece between accepting austerity or leaving the Eurozone.

Tsipras's Syriza government is campaigning for a 'no' vote, which many fear would spell Greece's exit from the 19-bloc eurozone.

It would be an unprecedented move. No country has ever left the euro before and it would result in Greece having to issue a new currency in order to keep the economy afloat.

On the other hand, a 'yes' vote would see further austerity measures implemented, with Tsipras resigning and a likely collapse of his left-wing coalition.

After five years of recession and welfare cuts, many ordinary Greeks would face even tougher times ahead if the creditors' terms are agreed to, such as a new VAT sales tax and increasing retirement age up to 67.

Supporters of both sides have been out in force in Athens over the past few days. Current polls predict that the 'yes' vote will prevail, but it is still neck and neck.

Whatever choice the people of Greece make, the future of the country and that of Europe, remains uncertain.