Greek referendum decision 'closes door' on further talks

Eurogroup chairman Jeroen Dijsselbloem has described the decision by Greece to hold a referendum on bailout terms as sad and said it closes the door on further talks where there could have been progress.

"The Greek government has apparently rejected our last proposals...that is a sad decision for Greece because it has closed the door for further talks where the door was still open in my mind," the Dutch finance minister said as he arrived for talks with his eurozone counterparts.

After a week of acrimonious talks in Brussels, Greek Prime Minister Alexis Tsipras last night dismissed lenders' proposals as blackmail. 

After midnight local time, he appeared on television to announce plans for a referendum on 5 July.
"Our responsibility is for the future of our country. This responsibility obliges us to respond to the ultimatum through the sovereign will of the Greek people," Mr Tsipras said.
The prime minister said he would respect the outcome of the vote.

But he argued the lenders demands "clearly violate European social rules and fundamental rights", would asphyxiate Greece's flailing economy and aimed at the "humiliation of the entire Greek people".

• Minister for Finance Michael Noonan said he was disappointed with the Greek call for a referendum saying they had unilaterally discontinued negotiations.

• He said he does not know what next week holds and "we're going into totally uncharted waters".

• Asked whether Ireland would vote to extend the Greek bailout, which runs out on Tuesday, until the referendum is held, Mr Noonan replied: 'We extended the bailout in February, but it was a long meeting before that decision was arrived at. I'm open to persuasion in both directions."

German finance minister Wolfgang Schaeuble also said Greece had "unilaterally" closed the door to more talks.

International Monetary Fund chief Christine Lagarde said the IMF would keep working on Greece's economy despite the referendum.
"The purpose of what we're doing is to actually restore the stability of the economy in Greece, this is what we'll continue to do. We'll continue to work," Ms Lagarde said as she arrived for today's meeting in Brussels.
"We have always shown a willingness towards flexibilty and we will continue to do so," she said. 
Finnish Finance Minister Alexander Stubb said an extension of the programme as it stands "is out of the question".
"I think plan B is fast unravelling into plan A," Mr Stubb added, referring to potentially more drastic options for Greece, including those that could lead to an Athens exit from the euro.

Assurances issued over Greek banks
The Greek referendum call also throws the country's banking system into focus.
A senior Greek politician has issued an assurance that banks would remain open and asked people to remain calm.
"Citizens should not be scared, there is no blackmail," Panos Kammenos, head of the government's junior coalition ally, told local television.
"The banks won't shut, the ATMs will (have cash). All this is exaggeration," he said, echoing previous denials of plans to implement capital controls.
In the early hours of this morning lines of people were seen forming to withdraw cash from ATMs in some parts of Athens.................http://www.rte.ie/news/2015/0627/710991-greece-economy/
27/6/15
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Related:

• Greek PM calls referendum on debt deal for July 5 

• Avant la réunion de l'Eurogroupe, Alexis Tspiras dégaine l'arme du référendum ...

• Nach Referendumsankündigung: Griechen stürmen Geldautomaten...

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