President of the European Commission Jean-Claude Juncker has made a notable intervention into the Greek impasse in what looks like desperate, last-gasp bid to prevent the country ploughing out of the eurozone, says the Guardian.
Stocks in Asia and Europe tumbled Monday, and U.S. stocks also looked set to open lower.
Juncker has told the Greek people that they are deciding
between the euro and the exit door the next Sunday, that their authorities have
lied to them, and that he has been their friend and ally at the
negotiating table.
The announcement implies a fear that the European project is losing direction and is about to lose its first member.
Juncker confirmed the claim that Greece’s creditors were prepared to discuss debt relief as part of a future aid deal, before hopes for a breakthrough faded last weekend.
In fact, Juncker is not offering a new compromise. Instead, he is arguing that the Commission was making a fair proposal – not “stupid austerity” – for the Greek people.
However, his comments on the referendum were inconceivable: telling Greeks
to vote 'Yes' in Sunday’s referendum is one thing, but warning “not to
commit suicide for fear of death” is another level altogether, says the Guardian.
Junker has raised the stakes in Sunday’s referendum to the highest possible level, by cautioning that “the whole planet” will see a 'No' vote as a declaration that Greece wants to exit Europe.
In a laconic one-line statement, Greece's government spokesman Gavriel Sakellarides shot back with a response:
“The indispensable factor as a sign of goodwill and credibility in any negotiation is sincerity.”
“Juncker was clearly panic-stricken throughout the press conference because Tsipras has not only wrong-footed them but outmaneuvered them,” said Alexis Mantheakis, former spokesman of the right-wing LAOS party in comments that will echo widely.
Greece’s creditors refused Greece’s suggestion that they extend the
country’s current bailout program until after the referendum.
ECB President Mario Draghi said the central bank wouldn’t provide any additional liquidity to the Greek banking system — prompting Tsipras to announce that Greek banks and the Athens stock market would stay closed until after the referendum.
