Greece voted against yielding to further austerity demanded by creditors, leaving Europe’s leaders to determine if the renegade nation can remain in the euro.

Sixty-one percent of voters backed Prime Minister Alexis Tsipras’s rejection of further spending cuts and tax increases in an unprecedented referendum that’s also taken the country to the brink of financial collapse.

Tsipras described the result as a “great victory”, and said Athens would return to the negotiating table on Monday with a strengthened hand.

As the euro dropped in Asian trading and Tsipras’s supporters filled Athens’s central Syntagma Square waving Greek flags, German Chancellor Angela Merkel and French President Francois Hollande called for an emergency leaders’ summit on Tuesday.

The result turns the tables on Merkel and Greece’s other creditors, who must now decide if a financial rescue of the region’s most indebted country is still possible. It significantly raises the chances of a Greek exit from the single currency, as the country’s banks run out of cash and its economy staggers toward all-out collapse.

“The bill for keeping Greece in the euro area -- without commitment to reform -- has just risen disproportionately,” said Mujtaba Rahman, the head of the Europe practice at political consultancy Eurasia Group. “The hawks in the euro group will win the debate that aid should be given to the country to leave the currency bloc.”

Back to Talks

The euro declined along with U.S. index futures. Europe’s single currency slipped 0.9 percent to $1.1017 as of 9:45 a.m. Sydney time and Standard & Poor’s 500 Index futures slid 1.3 percent. Ten-year Treasury futures rose to the highest since June 1.

The Greek result reverberated quickly across Europe’s political establishment. Within hours of the first projections, Merkel and French President Francois Hollande called for a summit of euro-area leaders on July 7, with banks including JPMorgan Chase & Co. saying a Greek departure from the euro is now the most likely scenario.

The European Central Bank is meeting Monday to discuss extending a new lifeline to Greek lenders, which have been closed for a week under capital controls that were imposed by Tsipras to stem withdrawals.

“Our immediate priority is to restore the Greek banking system,” Tsipras, 40, said in a speech after the result emerged. “I’m confident that the ECB fully realizes the humanitarian side of the crisis in our country.”

Restoring Dignity

European leaders are showing no immediate willingness to compromise. They firstly want to wait for see what proposals Tsipras will offer to keep Greece in the euro, according to a European government official with knowledge of the crisis strategy.

The question is whether they can negotiate with a government that has rejected their conditions for staying in the 19-member currency union, after Portugal and Ireland accepted similar measures and emerged from their own bailout programs.

Tsipras has “torn down the last bridges across which Europe and Greece could have moved toward a compromise,” German Vice Chancellor Sigmar Gabriel said in an interview with the Tagespiegel newspaper.

Tsipras and his Coalition of the Radical Left, or Syriza, swept to power in January after campaigning to end crippling budget cuts forced upon the country by creditors and promising to restore “dignity.”

Antagonism

Five months of protracted and antagonistic negotiations followed and optimism for a deal toward the end of June was suddenly dampened when he called the referendum, putting an end to talks.

European leaders largely characterized the plebiscite as a vote on membership in the euro itself, though Tsipras insists Greece can stay in regardless and said he will return to the negotiating table.

“The mandate Greeks gave is not a mandate for a rupture with Europe, but a mandate of reinforcing our negotiating power to achieve a sustainable agreement,” Tsipras said.

Syntagma Square turned into a raucous street party on Sunday night as “no” supporters gathered to celebrate. Some danced to music playing from speaker phones, while others took selfies with the crowds in the background.

Greek Flags

Waving a white-and-blue Greek flag, John Govesis, 26, said he and his whole family voted “no.” “I like freedom, I don’t need money from Europe,” he said. “This is the only way forward. I have a job, but maybe tomorrow I don’t.”

The country meanwhile is buckling under the strain of the capital controls and at risk of undoing four decades of integration with Europe. The economy has already shrunk about 25 percent over the past six years while the jobless rate is still the highest in the euro region.

Banks will struggle to re-open without significant new aid from the ECB, importers are concerned about paying their bills, and pension payments are being rationed.

“Although the situation is fluid, at this point Greek exit from the euro appears more likely than not,” Malcolm Barr, an economist at JPMorgan Chase & Co. in London, said in a report to clients on Sunday. It could come “under chaotic circumstances,” he said.