Euro Area Ends Greece Negotiations Until Referendum Outcome

Euro Area Ends Greece Negotiations Until Referendum Outcome

1 July 2015, 21:32
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Euro Area Ends Greece Negotiations Until Referendum Outcome


Euro-area finance ministers ruled out further negotiations between Greece and its creditors until a Sunday referendum on austerity, Dutch Finance Minister Jeroen Dijsselbloem said.

“Given the political situation, the rejection of the previous proposals, the referendum which will take place on Sunday, and the recommendation by the Greek government to vote ‘no,’ we see no grounds for further talks at this point,” Dijsselbloem, who led Wednesday’s conference call among his euro-area counterparts, said in a statement.

The second conference call in two days of the so-called Eurogroup took place shortly after Prime Minister Alexis Tsipras appeared on television urging Greeks to reject austerity measures by voting ‘no’ to creditor proposals in a July 5 plebiscite. On Tuesday, the euro area refused to extend Greece’s bailout program that expired at midnight.

Finance ministers “took note” of Greece’s demand that creditors amend their latest proposals, Dijsselbloem said.

“We will simply await now the outcome of the referendum on Sunday and take” that into account, Dijsselbloem said. Until then, there will be no negotiations either at the Eurogroup level or between the Greek government and its creditor institutions, he said.

“I’m very sorry about the situation given the strong determination of the Greek people to be part of Europe and to remain a part of the euro zone in which we fully support them,” Dijsselbloem said.

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