Greece announces referendum on bailout
Greece’s radical left-wing government announced a referendum on the latest proposed bailout deal – and urged voters to reject it.
Its fraught talks with its creditors took a dramatic turn early this morning when Prime Minister Alexis Tsipras revealed the July 5 referendum in a televised address to the nation, following an emergency meeting of his cabinet.
“The Greek government has been asked to accept a proposal that places new unbearable burdens on the Greek people,” he said.
“Right now, we bear an historic responsibility concerning ... the future of our country. And this responsibility obliges us to answer (the bailout creditors’) ultimatum based on the sovereign will of the Greek people.”
The move radically raises the stakes in Greece’s confrontation with its increasingly angry creditors, whom Mr Tsipras accused of seeking to “humiliate the country”, demanding new pension cuts, sales tax hikes and labour market reforms.
Worried Greeks have been pulling their money out of banks for months, and an estimated €4bn left Greek banks last week.
Queues were seen forming outside several Athens cash machines and fuel stations late last night and early today.
