EUROZONE-GREECE/REFERENDUM REAX Ministers react to news of Greek bailout referendum

Record ID: 135101

  • Title: EUROZONE-GREECE/REFERENDUM REAX Ministers react to news of Greek bailout referendum
  • Date: 26th June 2015
  • Summary: ATHENS, GREECE (JUNE 27, 2015) (REUTERS) VARIOUS OF MINISTERS EXITING PRIME MINISTER'S OFFICE AFTER CABINET MEETING ADMINISTRATIVE REFORMS MINISTER GEORGE KATROUGALOS TALKING TO JOURNALISTS JOURNALISTS RECORDING KATROUGALOS ON MOBILE PHONES (SOUNDBITE) (English) ADMINISTRATIVE REFORMS MINISTER, GEORGE KATROUGALOS, SAYING: "It is now for the Greek people to talk and to deci
  • Embargoed: 11th July 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVABIBM5V2BN8E6QY03UZIX4SWD7
  • Aspect Ratio: 16:9
  • Story Text: Greek ministers said on Saturday morning (July 27) it is up to the people of Greece to accept or reject a bailout agreement offered by creditors after the prime minister announced he would hold a referendum on July 5.
    Prime Minister Alexis Tsipras addressed the nation minutes earlier, saying the proposals from the international creditors aimed to humiliate the Greek people and would put an unbearable burden on them through higher VAT and pensions cuts.
    "It was asked of the Greek government to accept a proposal that puts new heavy burdens on the Greek people, that undermines the growth of Greek society and its economy, that not only maintains uncertainty but also increases the social inequalities," Tsipras said.
    Deputy Administrative Reform Minister George Katrougkalos said the country's leftist-led government had no plans to impose capital controls.
    "It is now for the Greek people to talk and to decide and so this is also a big moment for the democracy in Europe. The people in Europe must have a say for the economic policies, because there is not just one economic mix. Otherwise why have elections in Europe?" Katrougkalos said.
    Greece's Deputy Prime Minister Yannis Dragasakis and negotiator Euclid Tsakalotos will meet with European Central Bank head Mario Draghi on Saturday, the prime minister's office said.
    Health Minister Panagiotis Kouroublis and Culture Minister Nikos Xydakis said Greece wanted to stay in Europe and the eurozone.
    "We remain within the euro, we remain within Europe. We are claiming a deal that will give our country perspective. If it is something different that we want, it is for the Greek people to decide it. These measures do not lead us anywhere but catastrophe," said Kouroublis.
    "Greece has been always a part of Europe, actually the cradle of Europe and the cradle of democracy, and now it's our opportunity for the Greek people to vote for democracy, for self respect, for our eternal rights in the European family with mutual respect for each other," said Xydakis, adding that capital controls will not be introduced.
    Greek State Minister Nikos Pappas, a senior aide to Prime Minister Alexis Tsipras, said he believed Greeks would vote to reject the bailout agreement offered by creditors in Brussels.
    Tsipras called for the referendum after holding an emergency meeting with his ministers.
    The move came hours after repeated rounds of negotiations with European and IMF creditors in Brussels failed to produce an agreement.
    He said the creditors' proposal heaped "unbearable burdens" on the nation and urged Greeks to give a "sound response" to the "ultimatum".
    "These 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," Tsipras said in a televised address to the nation.
    Greece's right-wing Independent Greeks party will urge voters to reject the bailout agreement when they vote in the referendum.
    Tsipras said Athens will ask for an extension of its bailout agreement, which ends on June 30, by a few days.
    The Greek parliament will convene on Saturday to approve the cabinet's decision to call a referendum, he said.
    A Greek government spokesman said negotiations would continue with the creditors and that Greek Finance Minister Yanis Varoufakis would brief the Eurogroup.
    He said Draghi showed understanding and sensitivity to the government's decision.
    Greece needs the international lenders' bailout funding to cover a 1.6 billion IMF loan or default on its debts.
    Eurozone finance ministers are divided over whether a default would necessarily lead to Athens leaving the 19-nation single currency area, which would undermine the principle that membership is irrevocable.
    Failure to pay the 1.6 billion euro installment to the IMF on Tuesday (June 30) could trigger a bank run, capital controls to curb deposit flight and possibly the issuance of IOUs or a parallel currency.
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