Greek PM defiant on bailout despite cash crunch

Although Athens insists the referendum is narrowly on tough austerity conditions attached to a bailout that expired on Tuesday, European Union leaders say it is a vote on whether Greece wants to remain in the euro. The televised address added to the frantic and at times surreal atmosphere of recent days in which acrimonious messages from the leftist government have alternated with late-night offers of concessions to restart negotiations. President Prokopis Pavlopoulos, for his part, stressed the importance of Greece staying in Europe.

Eurozone finance ministers held a conference call Wednesday to discuss Tsipras’ letter.

“Come Monday, the Greek government will be at the negotiating table after the referendum with better terms for the Greek people”, Tsipras said.

International Monetary Fund member countries “would like to see the situation resolved (and) uncertainty waived”, she said, urging Greece to undertake economic reforms.

Things would get worse very quickly for most Greeks, who are already feeling the pain of six years of recession.

However, even if negotiations do restart after the referendum, Germany and others made clear that any talks on a new programme would have to start from scratch with different conditions.

But European leaders, fed up with Tsipras and in no mood for quick compromise, dashed any hopes of a breakthrough.

The battle for Greek votes entered full swing Thursday ahead of a crucial weekend referendum that could decide whether the country falls out of the euro.

He raised questions about the government’s ability to continue talks in such a case and rejected its argument that it would be in a stronger bargaining position with a “no” vote.

“They say I have a supposed plan that if you vote No I will take you out of Europe, they are wrong”. Eurozone finance ministers were set to weigh Greece’s latest p… “But it’s dreadfully complicated”. “The footprint of Greek banks in the United Kingdom is tiny compared to the size of our economy”.

Capital controls imposed this week meant most Greeks were still only allowed to withdraw 60 euros per day.

In a letter sent to the heads of the European Commission, the International Monetary Fund and the European Central Bank on Tuesday, Mr Tsipras conceded to a number of proposals, with a few exceptions which could still cause creditors to reject the deal. About 1,000 bank branches around the country were ordered by the government to reopen Wednesday to help desperate pensioners without ATM cards cash up to 120 euros ($134) from their retirement checks.

Ms Elizabeth Markos, a philosophy student sitting in a park in the capital, said she was “definitely voting “No””. A large white banner declaring ‘No to blackmail and austerity!’ was unfurled from windows of the finance ministry.

Saturday, June 27: Tsipras surprises creditors by declaring that a referendum will be held on whether or not to accept the stringent terms of the latest round of bailout aid.

But it asks creditors for gradual changes to pension and labour market reforms as well introducing a smaller cut to military spending this year.

On worldwide markets, shares in Japan and Hong Kong rose slightly Wednesday as investors watched to see the next step in the Greek saga.

A poll on Wednesday showed the “No” camp in the lead with 46 per cent, against 37 per cent for “Yes” and 17 per cent undecided.

Optimism that his offer to agree to a deal would result in a long-term solution was limited by German finance minister Wolfgang Schaeuble, who said it had brought no further clarity.