Greece’s prime minister has announced a snap referendum in a last-ditch attempt to get the country’s European creditors to back down on their demands to secure its eurozone future.
Alexis Tsipras called the surprise vote, to be held on on July 5, having spent Friday night holed up in an emergency meeting with his cabinet.
The question to be put before voters is whether or not the country is willing to submit to the conditions being demanded by the International Monetary Fund, European Union and European Central Bank.
Speaking to Greek television, Mr Tsipras said: “[Our creditors’] proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people,”
Greece’s finance minister Yanis Varoufakis said it was time for the people to decide.
As soon as the prime minister announced the vote, extreme Left wing elements within his party called for the country to reject the terms of the lenders.
Panagiotis Lafazanis, Greece’s energy minister, said the Greeks should provide a “resounding no” to the deal on the table.
It came after Greece rejected a €15bn rescue plan on Friday, lashing out at attempts to blackmail the country into submission.
Eurozone finance ministers are due to meet in Brussels on Saturday, as differences over tax rises and spending cuts continue to hold back an agreement.
The meeting had been billed as the last possible opportunity for Greece to cede to creditor demands and stave off a default.
In the absence of a deal, creditors are planning for a series of emergency default scenarios, as the banking system would likely face ruin. Capital controls in the form of enforced bank holidays and deposit withdrawal limits could come as early as Monday, according to analysts at Credit Suisse.
Source: The Telegraph