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What is happening to Greece?

The news has just broken that the European Central Bank will agree later today to end emergency assistance to Greek banks. This, together with yesterday’s news that the EU will not extend the bailout until Greece can hold a referendum on further austerity, means that it looks very likely that Greece is about to crash out of the Euro. Let’s quickly catch up on how the negotiations fell apart, before looking at what the events of today mean, and what could follow.

The situation is still changing fast, and on the evening of the 28th of June the ECB had indeed decided to end additional assistance to Greek banks, and capital controls have been imposed. The description below of what could happen is still relevant., but actual actions taken by the ECB and government may change.
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