Greece proceeds with vote plan
Financeministers refuse to budge fromdemands
ATHENS, Greece — The Greek government vowed Wednesday to go ahead with plans to have the people decide whether they want more austerity measures in exchange for a rescue deal. Greece offered more concessions to its creditors, but was rebuffed — Eurozone finance ministers refused to negotiate any more aid until the referendum clears up what the country wants.
The moves came on a fast-paced day of zigs-andzags that saw the Greek prime minister back off his earlier refusal to consider creditors’ belt-tightening demands, yet hold firm on putting the measures to a popular vote.
The strategy was met with a cool response.
Following a late-night teleconference, the 19 eurozone Greece's Finance Minister Yanis Varoufakis speaks Wednesday as he leaves his office in Athens as Eurozone finance ministers were set to weigh Greece's latest proposal for aid. finance ministers announced they were putting any further talks on hold.
“Given the political situation, the rejection of the previous proposals, the referendum, which will take place Sunday, and the recommendation by the Greek government to vote ‘No,’ we see no grounds for further talks at this point,” said Dutch Foreign Minister Jeroen Dijsselbloem, who heads the eurozone finance ministers’ body known as the eurogroup.
“There will be no talks in the coming days, either at eurogroup level or between the Greek authorities and the institutions on proposals or financial arrangements,” Dijsselbloem said,
Earlier Wednesday, Prime Minister Alexis Tsipras was defiant, saying the referendum would go ahead as planned Sunday and again urging citizens to vote “No.” In a televised address to the nation, he said a “No” result would not mean that Greece would have to leave the euro, as many European officials have argued.
Rather, Tsipras insisted, it would give the government a stronger negotiating position with creditors.
“There are those who insist on linking the result of the referendum with the country’s future in the euro,” Tsipras said. “They even say I have a so-called secret plan to take the country out of the EU if the vote is ‘No.’ They are lying with the full knowledge of that fact.”
Greece is in financial limbo after its bailout program expired at midnight Tuesday, cutting it off from vital financing and pushing it one step closer to leaving the euro. It also became the first developed country to fail to repay a debt to the International Monetary Fund on time. The last country to miss an IMF payment was Zimbabwe in 2001.
Still, there was some good news: Amid more chaotic scenes outside closed banks in Athens and elsewhere, the terms of its emergency $100 billion cash support were left unchanged.