“Before the referendum Germany can’t negotiate a new request” for assistance, Merkel was quoted as saying by a lawmaker of her conservative Christian Democrats.
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Mr Tsipras signalled the same earlier this week, declaring on state TV that he was not an “all-weather” prime minister – a strong indication he would step down if his proposal was defeated.
But a seeming last-minute decision to serve customers on an alphabetical basis, announced by some banks overnight and by others in the morning, led to chaotic scenes of confusion and anger, with many pensioners waiting for hours from before dawn to be eventually told they would have to return Thursday or Friday.
“It’s more the perception, the psychology and the precedent”, he said, “if (the Greeks) do leave”. Obama said the US does not believe the ongoing financial turmoil will result in “a major shock” to the American economy, the world’s largest. However, European Union officials have said the process can take a week but could go more quickly.
“Europe’s future is not at stake”, Merkel said.
“I never expected a democratic Europe not to give space and time [to hold the referendum]”.
In missing the deadline, Greece became the first developed nation to miss a payment to the International Monetary Fund, the Associated Press reported.
Greece’s rescue lenders have halted negotiations on a new financial aid program until after the vote on whether to accept reforms the creditors proposed last week in exchange for bailout loans. Pension reforms have been a particularly contentious issue during negotiations, with the PM pointing out that many Greek families rely on pensions to make ends meet and that there have already been cuts made to them by the previous government. Greece says its citizens have suffered enough with spending cuts and tax hikes that have lowered their standard of living. It’s a very positive move and a move of good will on the part of the European Central Bank.
ATMS are still only dispensing 60 euros to rest of the population.
While Greece’s banks remained closed, with elderly residents without bank cards being allowed to withdraw only $134 from their accounts and others continuing to line up at cash machines to take out the maximum amount allowed each day of nearly $68, Greeks are staging demonstrations in support of both sides of the question.
Mr Varadkar said it was hard for people not involved in the negotiations to follow what was happening in Athens.
The Greek government ordered its banks to close and imposed capital controls after the ECB, which had been waving through more funding as withdrawals from Greek banks soared, froze it on Sunday. Polls show the “no” vote remains ahead, but that the gap is narrowing.
On Tuesday night, Deputy Prime Minister Yannis Dragasakis hinted the same.
“I want you to answer “no”…to open a new bright page in our history”, Tsipras said in a televised address Wednesday.
Greece’s Finance Minister Yanis Varoufakis, center, leaves his office in Athens, Wednesday, July 1, 2015.
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The anti-capitalist Antarsya bloc also issued a blistering attack, saying whatever it was called, the accord would further impoverish Greeks.
