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Greece debt crisis: Europe says referendum is euro vs drachma - live Greece debt crisis: Europe says referendum is euro vs drachma - live
(35 minutes later)
4.29pm BST16:29
Here’s a useful timeline of the weekend’s dramatic events in the Greek crisis, from my colleague Katie Allen:
Related: Greece crisis timeline: the weekend that rocked the eurozone
4.26pm BST16:26
Another sign - if needed - that the current Greek crisis has repercussions beyond just the eurozone.
French president Francois Hollande has been on the phone with US president Barack Obama about the Greek situation, Reuters is reporting. The two reportedly agreed to work together to help restart dialogue on the crisis.
4.19pm BST16:194.19pm BST16:19
The current crisis is also having an impact on the arts, in particular the planned Athens Festival.The current crisis is also having an impact on the arts, in particular the planned Athens Festival.
Theatre producer Oli Sones says a cast of 23 performers were due to fly out to Athens tomorrow to perform Jesus Christ Superstar at the Herodes Atticus as part of the festival. But the promotor has now decided to cancel the shows:Theatre producer Oli Sones says a cast of 23 performers were due to fly out to Athens tomorrow to perform Jesus Christ Superstar at the Herodes Atticus as part of the festival. But the promotor has now decided to cancel the shows:
1/3 We're devastated by the cancellation of #jcsathens. Due to the current financial crisis in Greece our promoter took the decision...1/3 We're devastated by the cancellation of #jcsathens. Due to the current financial crisis in Greece our promoter took the decision...
2/3 to cancel the shows. Thank you to our extremely talented cast and team for their work - we hope we can return to Athens in better...2/3 to cancel the shows. Thank you to our extremely talented cast and team for their work - we hope we can return to Athens in better...
3/3 ..times and show the audiences there the brilliant show we had put together for them.3/3 ..times and show the audiences there the brilliant show we had put together for them.
4.10pm BST16:104.10pm BST16:10
Ahead of UK chancellor George Osborne speaking in parliament about Greece, UBS has taken a look at the possible impact on the UK of the Greek crisis:Ahead of UK chancellor George Osborne speaking in parliament about Greece, UBS has taken a look at the possible impact on the UK of the Greek crisis:
While the direct exposure of the UK to Greece is very limited, it is the potential for contagion that will likely be of most concern. For now the main focus is on the impact on financial markets. The monetary policy committee has scope to watch how the Greek referendum unfolds. If it needs to act, we believe the Committee is likely to sound rhetorically dovish first and foremost. After that, it has a range of options.While the direct exposure of the UK to Greece is very limited, it is the potential for contagion that will likely be of most concern. For now the main focus is on the impact on financial markets. The monetary policy committee has scope to watch how the Greek referendum unfolds. If it needs to act, we believe the Committee is likely to sound rhetorically dovish first and foremost. After that, it has a range of options.
The most immediate asset market transmission from greater Grexit risk to the UK is likely through the currency. At the Asia open the euro/pound had already breached 0.70 before recovering. We expect the euro to continue trading heavily in the coming days and, barring a surge in general dollar demand, the Bank of England exchange rate index could break 93, dragging sterling further away from the Bank’s own assumptions (at 90) and comfort levels. Rhetoric on the currency may rise but more explicit action looks unlikely barring serious contagion.The most immediate asset market transmission from greater Grexit risk to the UK is likely through the currency. At the Asia open the euro/pound had already breached 0.70 before recovering. We expect the euro to continue trading heavily in the coming days and, barring a surge in general dollar demand, the Bank of England exchange rate index could break 93, dragging sterling further away from the Bank’s own assumptions (at 90) and comfort levels. Rhetoric on the currency may rise but more explicit action looks unlikely barring serious contagion.
4.06pm BST16:064.06pm BST16:06
Here’s confirmation of Alexis Tsipras’ appearance on television tonight, from the man himself:Here’s confirmation of Alexis Tsipras’ appearance on television tonight, from the man himself:
Today at 10pm, I will be interviewed live on #ert by journalists P. Haritos and A. Alafogiorgos. #GreeceToday at 10pm, I will be interviewed live on #ert by journalists P. Haritos and A. Alafogiorgos. #Greece
3.59pm BST15:593.59pm BST15:59
Europe turns its guns on TsiprasEurope turns its guns on Tsipras
Two may be a coincidence, three is a trend, and four looks rather like a plan.Two may be a coincidence, three is a trend, and four looks rather like a plan.
The eurozone’s three largest economies have all come out today and told Greece exactly what they believe Sunday’s referendum is about, and it’s not simply about choosing the old reform offer.The eurozone’s three largest economies have all come out today and told Greece exactly what they believe Sunday’s referendum is about, and it’s not simply about choosing the old reform offer.
Matteo Renzi warning that Greece is voting to choose between the euro and the drachma makes a hat-trick.Matteo Renzi warning that Greece is voting to choose between the euro and the drachma makes a hat-trick.
France went first - with Francois Hollande appearing outside the Elysse Palace to declare:France went first - with Francois Hollande appearing outside the Elysse Palace to declare:
It is democracy, it is the right of the Greek people to decide what they want for their future. What is at stake is whether or not Greeks want to stay in the eurozone (or) take the risk of leaving,”It is democracy, it is the right of the Greek people to decide what they want for their future. What is at stake is whether or not Greeks want to stay in the eurozone (or) take the risk of leaving,”
And then came Germany -- although Angela Merkel left it to her coalition partner, Sigmar Gabriel, to deliver the news:And then came Germany -- although Angela Merkel left it to her coalition partner, Sigmar Gabriel, to deliver the news:
#greece #gabriel greece is voting in/out to euro. no vote 'is a clear decision against staying in the euro'#greece #gabriel greece is voting in/out to euro. no vote 'is a clear decision against staying in the euro'
#greece #merkel over. she didn't really say grexit happens if no vote. she left that to #gabriel. different party, same government#greece #merkel over. she didn't really say grexit happens if no vote. she left that to #gabriel. different party, same government
And on top of that, don’t forget Jean-Claude Juncker’s plea to Greece not to break away from Europe.And on top of that, don’t forget Jean-Claude Juncker’s plea to Greece not to break away from Europe.
On the other hand, Greece is actually asking its people to vote on whether or not to accept the last proposal from its lenders:On the other hand, Greece is actually asking its people to vote on whether or not to accept the last proposal from its lenders:
Updated at 4.06pm BSTUpdated at 4.06pm BST
3.45pm BST15:453.45pm BST15:45
Renzi: Referendum is euro vs drachmaRenzi: Referendum is euro vs drachma
Italy’s prime minister Matteo Renzi has added his weight to those warning that Greece is voting on its eurozone membership on Sunday.Italy’s prime minister Matteo Renzi has added his weight to those warning that Greece is voting on its eurozone membership on Sunday.
The leftwing PM has just tweeted that Greeks aren’t refereeing a bout between their prime minister and Brussels, it’s about much, much more.The leftwing PM has just tweeted that Greeks aren’t refereeing a bout between their prime minister and Brussels, it’s about much, much more.
The point is: greek referendum won’t be a derby EU Commission vs Tsipras, but euro vs dracma. This is the choice.The point is: greek referendum won’t be a derby EU Commission vs Tsipras, but euro vs dracma. This is the choice.
Renzi had been one of Tsipras’s closer allies – jokingly giving him a tie earlier this year, and even joshing around at Thursday’s EUCO summit:Renzi had been one of Tsipras’s closer allies – jokingly giving him a tie earlier this year, and even joshing around at Thursday’s EUCO summit:
It feels so long ago....It feels so long ago....
Updated at 3.57pm BSTUpdated at 3.57pm BST
3.42pm BST15:423.42pm BST15:42
The door is still open for negotiations between Greece and its creditors, Eurogroup chairman Jeroen Dijsselbloem has said.The door is still open for negotiations between Greece and its creditors, Eurogroup chairman Jeroen Dijsselbloem has said.
He said he was disappointed that after months of negotiations, Greece had ended discussions, according to Reuters. But he added:He said he was disappointed that after months of negotiations, Greece had ended discussions, according to Reuters. But he added:
“I continue to say our door is open, although the options and the time are very limited.“I continue to say our door is open, although the options and the time are very limited.
“This really is about the future of Greece and also of the eurozone, but mainly of Greece.”“This really is about the future of Greece and also of the eurozone, but mainly of Greece.”
3.35pm BST15:353.35pm BST15:35
With Wall Street now open, America is now joining in the global sell-off. Our correspondent Rupert Neate reports:With Wall Street now open, America is now joining in the global sell-off. Our correspondent Rupert Neate reports:
US markets fell sharply on Monday morning as fears about a Greek exit from the Euro spread across the Atlantic. The Dow Jones, S&P 500 and Nasdaq were down as much as 0.9% shortly after the markets opened. Nearly all world markets fell on Monday, with most suffering much greater falls than the US, whose economy has little exposure to Greece.“A week ago, it seemed very likely that we were close to having a resolution, and now all of a sudden we’re waking up to capital controls?” Leo Grohowski, chief investment officer at BNY Mellon Wealth Management, told Reuters.US markets fell sharply on Monday morning as fears about a Greek exit from the Euro spread across the Atlantic. The Dow Jones, S&P 500 and Nasdaq were down as much as 0.9% shortly after the markets opened. Nearly all world markets fell on Monday, with most suffering much greater falls than the US, whose economy has little exposure to Greece.“A week ago, it seemed very likely that we were close to having a resolution, and now all of a sudden we’re waking up to capital controls?” Leo Grohowski, chief investment officer at BNY Mellon Wealth Management, told Reuters.
“I’m not confident that today reflects all the bad news that could happen. Investors are really bumping up the odds that Greece will exit the euro.”“I’m not confident that today reflects all the bad news that could happen. Investors are really bumping up the odds that Greece will exit the euro.”
Updated at 3.35pm BSTUpdated at 3.35pm BST
3.31pm BST15:313.31pm BST15:31
Away from the financial markets – and the political blame game, and the queues, and the empty restaurants – there are people in Greece who have already lost everything since the crisis began.Away from the financial markets – and the political blame game, and the queues, and the empty restaurants – there are people in Greece who have already lost everything since the crisis began.
Jon Henley visited one couple who lost their job, then their home, and would be sleeping on the streets if their friends hadn’t rallied around and paid for a caravan...Jon Henley visited one couple who lost their job, then their home, and would be sleeping on the streets if their friends hadn’t rallied around and paid for a caravan...
Jon writes:Jon writes:
The caravan is old, but spotless. It is home to Georgios Karvouniaris, 61, and his sister Barbara, 64, two Greeks for whom all the Brussels wrangling over VAT rates, corporation tax and pension reforms has meant nothing – because they have nothing, no income of any kind.The caravan is old, but spotless. It is home to Georgios Karvouniaris, 61, and his sister Barbara, 64, two Greeks for whom all the Brussels wrangling over VAT rates, corporation tax and pension reforms has meant nothing – because they have nothing, no income of any kind.
Next Sunday’s referendum – which, if the country stays solvent that long, will either send Greece back to the negotiating table with its creditors or precipitate its exit from the eurozone – is unlikely to affect them much either.Next Sunday’s referendum – which, if the country stays solvent that long, will either send Greece back to the negotiating table with its creditors or precipitate its exit from the eurozone – is unlikely to affect them much either.
“I do not see how any of it will change our lives. I have no hope, anyway,” said Georgios, sitting in a scavenged plastic garden chair beneath a parasol liberated from a skip.“I do not see how any of it will change our lives. I have no hope, anyway,” said Georgios, sitting in a scavenged plastic garden chair beneath a parasol liberated from a skip.
Here’s the full piece:Here’s the full piece:
Related: The Greeks for whom all the talk means nothing – because they have nothingRelated: The Greeks for whom all the talk means nothing – because they have nothing
Updated at 3.58pm BSTUpdated at 3.58pm BST
3.29pm BST15:293.29pm BST15:29
Meanwhile, some Greek bank branches may open again on Thursday, a government official has said.Meanwhile, some Greek bank branches may open again on Thursday, a government official has said.
Specifically, 850 branches are expected to open to allow for the payment of pensions, although they will be shut for other business, according to Reuters. The official also suggested that the €60 daily limit could also be raised, but only if the European Central Bank continues to support the banks though its emergency funding programme.Specifically, 850 branches are expected to open to allow for the payment of pensions, although they will be shut for other business, according to Reuters. The official also suggested that the €60 daily limit could also be raised, but only if the European Central Bank continues to support the banks though its emergency funding programme.
3.22pm BST15:223.22pm BST15:22
Reuters has heard that Greece asked the European Central Bank for €6bn in extra liquidity at yesterday’s emergency meeting.Reuters has heard that Greece asked the European Central Bank for €6bn in extra liquidity at yesterday’s emergency meeting.
As we already know, the ECB rejected the request and left ELA at its current €89bn, following the news that Greece’s bailout would expire on 30 June.As we already know, the ECB rejected the request and left ELA at its current €89bn, following the news that Greece’s bailout would expire on 30 June.
I think €6bn would have been the biggest jump in ELA funding since the Greek crisis started, showing just how much cash was taken out over the weekend - and how much more the Bank of Greece was likely to leave if the banks reopened.I think €6bn would have been the biggest jump in ELA funding since the Greek crisis started, showing just how much cash was taken out over the weekend - and how much more the Bank of Greece was likely to leave if the banks reopened.
3.15pm BST15:153.15pm BST15:15
Tsipras on TV tonightTsipras on TV tonight
Greek journalists are flagging up that Alexis Tsipras may address the nation again this evening - 9pm local time or 7pm BST.Greek journalists are flagging up that Alexis Tsipras may address the nation again this evening - 9pm local time or 7pm BST.
PM Tsipras to speak after 9:00 News on state TV #Greece https://t.co/DoYpeb5JawPM Tsipras to speak after 9:00 News on state TV #Greece https://t.co/DoYpeb5Jaw
3.08pm BST15:083.08pm BST15:08
Back in Brussels, European Parliament president Martin Schulz is holding a press conference – and urging a Yes vote on Sunday.Back in Brussels, European Parliament president Martin Schulz is holding a press conference – and urging a Yes vote on Sunday.
He’s also warning that the referendum is effectively on Greece’s membership of the eurozone.He’s also warning that the referendum is effectively on Greece’s membership of the eurozone.
We make an appeal to the Greek people to vote yes, Martin Schulz of @Europarl_EN, I will run and I will fight to convince Gk people to stayWe make an appeal to the Greek people to vote yes, Martin Schulz of @Europarl_EN, I will run and I will fight to convince Gk people to stay
So much for Angela Merkel’s claim that no-one should put pressure on the Greek people …So much for Angela Merkel’s claim that no-one should put pressure on the Greek people …
Schulz is also suggesting he might visit Greece to put forward Brussels’ case.Schulz is also suggesting he might visit Greece to put forward Brussels’ case.
SCHULZ: I was asked to go to #Greece by the conference of EP Presidents and I am prepared to goSCHULZ: I was asked to go to #Greece by the conference of EP Presidents and I am prepared to go
2.58pm BST14:582.58pm BST14:58
Phoebe Greenwood has also met with a restaurant owner in Plaka, the historical Athens district close to the Acropolis, whose tables are unusually deserted today:Phoebe Greenwood has also met with a restaurant owner in Plaka, the historical Athens district close to the Acropolis, whose tables are unusually deserted today:
2.52pm BST14:522.52pm BST14:52
My colleague Phoebe Greenwood reports from this cash machine in Syntagma Square which re-opened this lunchtime:My colleague Phoebe Greenwood reports from this cash machine in Syntagma Square which re-opened this lunchtime:
Updated at 2.52pm BSTUpdated at 2.52pm BST
2.48pm BST14:482.48pm BST14:48
Merkel is downplaying the potential impact of a Greek default, saying finance minister Wolfgang Schäuble has already said Germany is well prepared.Merkel is downplaying the potential impact of a Greek default, saying finance minister Wolfgang Schäuble has already said Germany is well prepared.
#greece #gabriel debt relief only in 3rd programme, meaning longer maturities, lower rates - no debt swap#greece #gabriel debt relief only in 3rd programme, meaning longer maturities, lower rates - no debt swap
#greece #merkel already in damage limitation mode. losses from greek default not a big problem, efsf is solidly structured#greece #merkel already in damage limitation mode. losses from greek default not a big problem, efsf is solidly structured
And the German chancellor suggests there’s no legal basis to keep providing funds to Greece after its bailout expires tomorrow night.And the German chancellor suggests there’s no legal basis to keep providing funds to Greece after its bailout expires tomorrow night.
#greece #merkel no legal basis for interim programme for greece#greece #merkel no legal basis for interim programme for greece
2.36pm BST14:362.36pm BST14:36
Merkel isn’t rushing back to Brussels either:Merkel isn’t rushing back to Brussels either:
#greece #merkel no real reason for another EU summit#greece #merkel no real reason for another EU summit
2.35pm BST14:352.35pm BST14:35
Angela Merkel is now suggesting that no-one should try to influence the Greek referendum.....Angela Merkel is now suggesting that no-one should try to influence the Greek referendum.....
(surely that ship sailed over the horizon mid-way though Jean-Claude Juncker’s speech?!).(surely that ship sailed over the horizon mid-way though Jean-Claude Juncker’s speech?!).
....we just need to point out the consequences, Merkel adds.....we just need to point out the consequences, Merkel adds.
#greece #merkel don't want to put pressure, but we have to point out the consequences#greece #merkel don't want to put pressure, but we have to point out the consequences
2.29pm BST14:292.29pm BST14:29
Berlin is also adamant that Greece is voting on its eurozone membership next Sunday.Berlin is also adamant that Greece is voting on its eurozone membership next Sunday.
#greece #gabriel greece is voting in/out to euro. no vote 'is a clear decision against staying in the euro'#greece #gabriel greece is voting in/out to euro. no vote 'is a clear decision against staying in the euro'
2.29pm BST14:292.29pm BST14:29
Sigmar Gabriel, the German vice-chancellor (and social democrat), is alongside Merkel at the press conference.Sigmar Gabriel, the German vice-chancellor (and social democrat), is alongside Merkel at the press conference.
He’s being extremely critical of Alexis Tsipras, saying the Greek PM threatens the entire eurozone.He’s being extremely critical of Alexis Tsipras, saying the Greek PM threatens the entire eurozone.
Our Europe editor Ian Traynor is covering the press conference.Our Europe editor Ian Traynor is covering the press conference.
#greece #gabriel europe in its worst crisis since the treaty of rome founding#greece #gabriel europe in its worst crisis since the treaty of rome founding
#greece #gabriel last offer was the best greece has ever got from troika#greece #gabriel last offer was the best greece has ever got from troika
#greece #gabriel europe and germany cannot hand out money unconditionally#greece #gabriel europe and germany cannot hand out money unconditionally
#greece #gabriel tsipras wanted to change the rules for the euro#greece #gabriel tsipras wanted to change the rules for the euro
#greece #gabriel tsipras wanted a different eurozone politically and ideologically. very dangerous#greece #gabriel tsipras wanted a different eurozone politically and ideologically. very dangerous
#greece #gabriel very tough. tsipras policies and ideology imperils entire eurozone#greece #gabriel very tough. tsipras policies and ideology imperils entire eurozone
2.26pm BST14:262.26pm BST14:26
Angela Merkel is talking about how the eurozone is now facing a decisive challenge.Angela Merkel is talking about how the eurozone is now facing a decisive challenge.
She’s not ruling out more talks with Greece after Sunday’s referendum, but insisting that Athens was given a generous offerShe’s not ruling out more talks with Greece after Sunday’s referendum, but insisting that Athens was given a generous offer
#greece #merkel the euro 'faces a decisive challenge'#greece #merkel the euro 'faces a decisive challenge'
#greece #merkel if greek govt asks for more negs after the referendum, we won't close that off#greece #merkel if greek govt asks for more negs after the referendum, we won't close that off
2.19pm BST14:192.19pm BST14:19
Merkel press conference beginsMerkel press conference begins
German chancellor Angela Merkel has begun giving her press conference on the Greek crisis -- here’s a livefeed.German chancellor Angela Merkel has begun giving her press conference on the Greek crisis -- here’s a livefeed.
Updated at 2.40pm BSTUpdated at 2.40pm BST
2.17pm BST14:172.17pm BST14:17
A reader, Martin Royalton-Kisch, has got in touch to report that the situation in Kolonaki, central Athens, remains calm.A reader, Martin Royalton-Kisch, has got in touch to report that the situation in Kolonaki, central Athens, remains calm.
No panic at the two banks and two supermarkets there, he tells me.No panic at the two banks and two supermarkets there, he tells me.
At the Carrefour Express, there was just one customer paying, at the other, about 6, a normal Monday.At the Carrefour Express, there was just one customer paying, at the other, about 6, a normal Monday.
Updated at 2.17pm BSTUpdated at 2.17pm BST
2.05pm BST14:052.05pm BST14:05
In another surprise development, it has emerged that the Greek prime minister Alexis Tsipras spoke with EU Commission chief by phone just before Juncker’s press conference in Brussels.In another surprise development, it has emerged that the Greek prime minister Alexis Tsipras spoke with EU Commission chief by phone just before Juncker’s press conference in Brussels.
The Greek prime minister made it clear that “impeding the democratic expression of the Greek people by closing banks is outside the democratic tradition of Europe.”The Greek prime minister made it clear that “impeding the democratic expression of the Greek people by closing banks is outside the democratic tradition of Europe.”
“He also told the president of the commission that he, himself, as as European citizen ought to defend the traditions of Europe so the Greek people can decide on Sunday undistracted.”“He also told the president of the commission that he, himself, as as European citizen ought to defend the traditions of Europe so the Greek people can decide on Sunday undistracted.”
“With this in mind, he [Tsipras] asked [Juncker] to help so that the [bailout] programme could be extended by a few days and liquidity restored to the country’s banking system.”“With this in mind, he [Tsipras] asked [Juncker] to help so that the [bailout] programme could be extended by a few days and liquidity restored to the country’s banking system.”
1.55pm BST13:551.55pm BST13:55
Helena SmithHelena Smith
And now it emerges that even that symbol of democracy itself, the Acropolis, has not been spared the spat now dominating Greece’s relations with creditors.And now it emerges that even that symbol of democracy itself, the Acropolis, has not been spared the spat now dominating Greece’s relations with creditors.
The Greek culture minister has JUST released an announcement saying that with cash being sparse, visitors and organised groups, can now pay for entrance tickets to the site with plastic.The Greek culture minister has JUST released an announcement saying that with cash being sparse, visitors and organised groups, can now pay for entrance tickets to the site with plastic.
In a statement, it said:In a statement, it said:
“It has been a demand for many years and now will be fulfilled. Especially for as long as there is a difficulty with liquid cash groups of tourists will be given vouchers.”“It has been a demand for many years and now will be fulfilled. Especially for as long as there is a difficulty with liquid cash groups of tourists will be given vouchers.”
Updated at 2.07pm BSTUpdated at 2.07pm BST
1.53pm BST13:531.53pm BST13:53
In a surprise move the deputy transport minister Christos Spirtzis has decided that all forms of transport across Athens’ transit network will be free until after the referendum is held.In a surprise move the deputy transport minister Christos Spirtzis has decided that all forms of transport across Athens’ transit network will be free until after the referendum is held.
Trams, trolleys, buses and trains are included in the decision and will be running free services until next Monday.Trams, trolleys, buses and trains are included in the decision and will be running free services until next Monday.
1.50pm BST13:501.50pm BST13:50
Here’s our Europe editor Ian Traynor on Juncker’s speech:Here’s our Europe editor Ian Traynor on Juncker’s speech:
#greece @JunckerEU sounded proprietorial about *his* europe. Knows he's losing it#greece @JunckerEU sounded proprietorial about *his* europe. Knows he's losing it
#greece like it or lump it, @atsipras has bits of eu elite desperate and panicking. @JunckerEU felt like end of an era#greece like it or lump it, @atsipras has bits of eu elite desperate and panicking. @JunckerEU felt like end of an era
#greece @JunckerEU teases on debt relief, says talking to ESM boss. deeply disingeneous.EU chaps make clear nothing new on offer and not now#greece @JunckerEU teases on debt relief, says talking to ESM boss. deeply disingeneous.EU chaps make clear nothing new on offer and not now
1.46pm BST13:461.46pm BST13:46
Back in the UK, David Cameron has called a top-level contingency planning meeting on Greece, with Bank of England governor Mark Carney and chancellor George Osborne.Back in the UK, David Cameron has called a top-level contingency planning meeting on Greece, with Bank of England governor Mark Carney and chancellor George Osborne.
It will look at the impact on Greek bank branches in the UK, and ‘consular issues’, says the PM’s spokeswoman.It will look at the impact on Greek bank branches in the UK, and ‘consular issues’, says the PM’s spokeswoman.
In London British PM Cameron holds another contingency planning meeting on #GrexitIn London British PM Cameron holds another contingency planning meeting on #Grexit
1.32pm BST13:321.32pm BST13:32
Helena SmithHelena Smith
Juncker’s appeal for Greeks to vote “Yes” in the referendum next week is likely to further inflame spirits, writes Helena Smith from Athens.Juncker’s appeal for Greeks to vote “Yes” in the referendum next week is likely to further inflame spirits, writes Helena Smith from Athens.
The EU president’s interjection today will not go down well with the NO camp or the government, whose ministers this morning, have been busily accusing creditors of trying to influence the outcome by “terrorising” the Greek people.The EU president’s interjection today will not go down well with the NO camp or the government, whose ministers this morning, have been busily accusing creditors of trying to influence the outcome by “terrorising” the Greek people.
“Juncker was clearly panic-stricken throughout the press conference because Tsipras has not only wrong-footed them but outmaneuvered them,” said Alexis Mantheakis, former spokesman of the right-wing LAOS party in comments that will echo widely.“Juncker was clearly panic-stricken throughout the press conference because Tsipras has not only wrong-footed them but outmaneuvered them,” said Alexis Mantheakis, former spokesman of the right-wing LAOS party in comments that will echo widely.
“The Greek government called their bluff after the ‘take it or leave it’ ultimatum to Greece. Tsipras is no longer in the orbit of their control. He is the bird that has flown the cage.”“The Greek government called their bluff after the ‘take it or leave it’ ultimatum to Greece. Tsipras is no longer in the orbit of their control. He is the bird that has flown the cage.”
And the Greek government has shot back with a fiery response to Juncker’s claims.And the Greek government has shot back with a fiery response to Juncker’s claims.
In a terse one-line statement, the government spokesman Gavriel Sakellarides said:In a terse one-line statement, the government spokesman Gavriel Sakellarides said:
“The indispensable factor as a sign of goodwill and credibility in any negotiation is sincerity.”“The indispensable factor as a sign of goodwill and credibility in any negotiation is sincerity.”
Updated at 1.51pm BSTUpdated at 1.51pm BST
1.16pm BST13:161.16pm BST13:16
And here’s some instant reaction from Greeks to Juncker’s intervention – his comment about “not choosing suicide over death” has not gone down well.And here’s some instant reaction from Greeks to Juncker’s intervention – his comment about “not choosing suicide over death” has not gone down well.
At this late stage, nothing to gain from Greek/European leaders claiming to have done right but only from admitting mistakes #Greece #euroAt this late stage, nothing to gain from Greek/European leaders claiming to have done right but only from admitting mistakes #Greece #euro
Another (implied) #Juncker highlight: "Vote yes now and trust us to maybe, possibly discuss debt relief in the fall." Yeah, we trust you.Another (implied) #Juncker highlight: "Vote yes now and trust us to maybe, possibly discuss debt relief in the fall." Yeah, we trust you.
Juncker "You sh'd not commit suicide bec u are afraid of death" Austerity=> 35% rise in suicides in just 2yrs #Greece http://t.co/FfUBeDmAZHJuncker "You sh'd not commit suicide bec u are afraid of death" Austerity=> 35% rise in suicides in just 2yrs #Greece http://t.co/FfUBeDmAZH
@damomac @northaura 11,000 ppl since 2011 11,000 families affected@damomac @northaura 11,000 ppl since 2011 11,000 families affected
Updated at 1.28pm BSTUpdated at 1.28pm BST
1.04pm BST13:041.04pm BST13:04
Here’s how European correspondents are responding to Juncker’s speech:Here’s how European correspondents are responding to Juncker’s speech:
Plenty of govts/officials thought it v dangerous for outsiders to insert themselves into Greek campaign. @JunckerEU clearly not among themPlenty of govts/officials thought it v dangerous for outsiders to insert themselves into Greek campaign. @JunckerEU clearly not among them
INSTANT ANALYSIS: @JunckerEU has just appointed himself head of the "YES" campaign in #Greferendum - & his political gloves are off #GreeceINSTANT ANALYSIS: @JunckerEU has just appointed himself head of the "YES" campaign in #Greferendum - & his political gloves are off #Greece
45 minutes of drama in the @eucommission briefing room, Juncker didn't pull any punches, called Tsipras a liar & begged the Greeks for mercy45 minutes of drama in the @eucommission briefing room, Juncker didn't pull any punches, called Tsipras a liar & begged the Greeks for mercy
Can't wait til Juncker does this speech again ahead of the UK referendum.Can't wait til Juncker does this speech again ahead of the UK referendum.
Updated at 1.04pm BSTUpdated at 1.04pm BST
1.00pm BST13:001.00pm BST13:00
Snap summary: Juncker tells Greece to vote YesSnap summary: Juncker tells Greece to vote Yes
When the full tale of the eurozone crisis is finally written, the last hour deserves a special mention.When the full tale of the eurozone crisis is finally written, the last hour deserves a special mention.
Jean-Claude Juncker, president of the European Commission, has made a remarkable intervention into the Greek crisis in what looks like desperate, last-gasp bid to prevent the country ploughing out of the eurozone.Jean-Claude Juncker, president of the European Commission, has made a remarkable intervention into the Greek crisis in what looks like desperate, last-gasp bid to prevent the country ploughing out of the eurozone.
He has effectively told the Greek people that they are choosing between the euro and the exit door on Sunday, that their government has lied to them, and that he has been their friend and ally at the negotiating table.He has effectively told the Greek people that they are choosing between the euro and the exit door on Sunday, that their government has lied to them, and that he has been their friend and ally at the negotiating table.
Underneath it all, the desperate fear that the European project is swerving off course and about to lose its first member.Underneath it all, the desperate fear that the European project is swerving off course and about to lose its first member.
Juncker confirmed the claim that Greece’s creditors were prepared to discuss debt relief as part of a future aid deal, before Alexis Tsipras shattered hopes of a breakthrough last weekend.Juncker confirmed the claim that Greece’s creditors were prepared to discuss debt relief as part of a future aid deal, before Alexis Tsipras shattered hopes of a breakthrough last weekend.
A clearly wounded Juncker spoke of feeling “deeply distressed and saddened by the spectacle that Europe gave last Saturday”.A clearly wounded Juncker spoke of feeling “deeply distressed and saddened by the spectacle that Europe gave last Saturday”.
In a single night, the European conscience has taken a heavy blow. Goodwill has somewhat evaporated.In a single night, the European conscience has taken a heavy blow. Goodwill has somewhat evaporated.
Crucially, Juncker is not offering a new compromise. Instead, he is arguing that the Commission was making a fair proposal – not “stupid austerity” – for the Greek people.Crucially, Juncker is not offering a new compromise. Instead, he is arguing that the Commission was making a fair proposal – not “stupid austerity” – for the Greek people.
But his comments on the referendum are jaw-dropping: telling Greeks to vote Yes in Sunday’s referendum is one thing, but warning “not to commit suicide for fear of death” is another level altogether.But his comments on the referendum are jaw-dropping: telling Greeks to vote Yes in Sunday’s referendum is one thing, but warning “not to commit suicide for fear of death” is another level altogether.
And he has raised the stakes in Sunday’s referendum to the highest level possible, by warning that “the whole planet” will see a no vote as a declaration that Greece wants to leave Europe.And he has raised the stakes in Sunday’s referendum to the highest level possible, by warning that “the whole planet” will see a no vote as a declaration that Greece wants to leave Europe.
Updated at 1.04pm BSTUpdated at 1.04pm BST
12.36pm BST12:3612.36pm BST12:36
Ever the polyglot, Juncker concludes a remarkable session with a few words of Greek.Ever the polyglot, Juncker concludes a remarkable session with a few words of Greek.
And that just highlights how he’s now trying to reach out to those in Greece, who he insists he cares deeply about.And that just highlights how he’s now trying to reach out to those in Greece, who he insists he cares deeply about.
Killer line from #Juncker - I will never let the Greek people down, ever – and I know that the Greek people don’t want to let the EU down.Killer line from #Juncker - I will never let the Greek people down, ever – and I know that the Greek people don’t want to let the EU down.
Snap summary to follow...Snap summary to follow...
Updated at 12.36pm BSTUpdated at 12.36pm BST
12.32pm BST12:3212.32pm BST12:32
A No vote would be disastrous for Greece, Juncker reiterates.A No vote would be disastrous for Greece, Juncker reiterates.
The entire planet would take it as a sign that the Greek people want to distance themselves from Europe.The entire planet would take it as a sign that the Greek people want to distance themselves from Europe.
12.31pm BST12:3112.31pm BST12:31
Juncker is asked how much damage has been done to relations between Brussels and the current Greek government.Juncker is asked how much damage has been done to relations between Brussels and the current Greek government.
The referendum came as a surprise, Juncker says. Alexis Tsipras didn’t tell me, but I don’t blame him personally.The referendum came as a surprise, Juncker says. Alexis Tsipras didn’t tell me, but I don’t blame him personally.
Updated at 12.32pm BSTUpdated at 12.32pm BST
12.28pm BST12:2812.28pm BST12:28
Juncker's backdrop is giant Greek and EU flags #Greece pic.twitter.com/99FgNXHID8Juncker's backdrop is giant Greek and EU flags #Greece pic.twitter.com/99FgNXHID8
12.27pm BST12:2712.27pm BST12:27
Juncker urges Greece to vote YES to stay in the euroJuncker urges Greece to vote YES to stay in the euro
WOW. The head of the European Commission has effectively said Sunday’s referendum is a vote on Greece’s membership of the eurozone.WOW. The head of the European Commission has effectively said Sunday’s referendum is a vote on Greece’s membership of the eurozone.
I ask the Greek people to vote Yes in Sunday’s referendum, says Juncker. Vote Yes to stay in the euro.I ask the Greek people to vote Yes in Sunday’s referendum, says Juncker. Vote Yes to stay in the euro.
And he adds:And he adds:
I say to the Greek people, you should not commit suicide because you are afraid of death.I say to the Greek people, you should not commit suicide because you are afraid of death.
"You should not commit suicide because you're afraid of death": @JunckerEU to the Greek people. Well that'll clinch it."You should not commit suicide because you're afraid of death": @JunckerEU to the Greek people. Well that'll clinch it.
12.21pm BST12:2112.21pm BST12:21
Juncker says the Greek people deserve to know the whole story -- accusing Athens of not telling the truth.Juncker says the Greek people deserve to know the whole story -- accusing Athens of not telling the truth.
Juncker accusing Greek government of lying: "it would be advisable if the Greek government told the truth."Juncker accusing Greek government of lying: "it would be advisable if the Greek government told the truth."
12.19pm BST12:1912.19pm BST12:19
The door is still open, Juncker says, but he’s not announcing a new proposal now.The door is still open, Juncker says, but he’s not announcing a new proposal now.
We really moved mountains, until the last minute, until the Greek authorities closed the door...We really moved mountains, until the last minute, until the Greek authorities closed the door...
So, despite reports, I am not announcing anything new today, he adds.So, despite reports, I am not announcing anything new today, he adds.
President @JunckerEU confirms that he has no new proposals for #Greece today. #GreferendumPresident @JunckerEU confirms that he has no new proposals for #Greece today. #Greferendum
12.17pm BST12:1712.17pm BST12:17
Juncker’s claim that Greece’s creditors never wanted to cut Greek pensions has sent eyebrows soaring in the press room:Juncker’s claim that Greece’s creditors never wanted to cut Greek pensions has sent eyebrows soaring in the press room:
Pension cuts, creditor target is to reduce Greek spending on pensioners by 1% of GDP for next year. @JunckerEU is telling porkiesPension cuts, creditor target is to reduce Greek spending on pensioners by 1% of GDP for next year. @JunckerEU is telling porkies
Creditors' bailout offer includes phasing out EKAS "solidarity grant" by Dec 2019. That's a pension cut, regardless of what @JunckerEU saysCreditors' bailout offer includes phasing out EKAS "solidarity grant" by Dec 2019. That's a pension cut, regardless of what @JunckerEU says
Updated at 12.19pm BSTUpdated at 12.19pm BST
12.14pm BST12:1412.14pm BST12:14
President @JunckerEU says Greek negotiating team left the table at the worst moment. "We were ready to discuss debt measures". #GreferendumPresident @JunckerEU says Greek negotiating team left the table at the worst moment. "We were ready to discuss debt measures". #Greferendum
Juncker: Gk authorities walked away "unexpectedly I must say" on Fri nightJuncker: Gk authorities walked away "unexpectedly I must say" on Fri night
Updated at 12.15pm BSTUpdated at 12.15pm BST
12.13pm BST12:1312.13pm BST12:13
Juncker is now insisting that Greece’s creditors were ready to discuss debt relief, in line with a pledge made in 2012. Mr Tsipras knows that.Juncker is now insisting that Greece’s creditors were ready to discuss debt relief, in line with a pledge made in 2012. Mr Tsipras knows that.
[that 2012 pledge has been sitting dormant ever since, though][that 2012 pledge has been sitting dormant ever since, though]
Updated at 12.15pm BSTUpdated at 12.15pm BST
12.11pm BST12:1112.11pm BST12:11
Yes, it was a demanding package, says Juncker - but also a fair one.Yes, it was a demanding package, says Juncker - but also a fair one.
We did not propose pension cuts … This was never, ever on the table, and it is wrong to claim that it was, says Juncker (another attack on the Greek side).We did not propose pension cuts … This was never, ever on the table, and it is wrong to claim that it was, says Juncker (another attack on the Greek side).
The Greek government had the ability to substitute measures, he adds. And we also pushed for structural changes to tackle vested interests, Juncker insists:The Greek government had the ability to substitute measures, he adds. And we also pushed for structural changes to tackle vested interests, Juncker insists:
It took some times, hours, to persuade the Greek government to impose a less-favourable tax regime for ship owners, even though this is common sense.It took some times, hours, to persuade the Greek government to impose a less-favourable tax regime for ship owners, even though this is common sense.
Juncker adds that Greece suffers from a lack of competition, meaning that energy and commodity prices are among the highest in Europe. He says he wanted to tackle that.Juncker adds that Greece suffers from a lack of competition, meaning that energy and commodity prices are among the highest in Europe. He says he wanted to tackle that.
Updated at 12.14pm BSTUpdated at 12.14pm BST
12.05pm BST12:0512.05pm BST12:05
Juncker is arguing that the Greek side deliberately dragged out talks, leading to the current crisis:Juncker is arguing that the Greek side deliberately dragged out talks, leading to the current crisis:
We've been patient waiting for Greek proposals, which were often delayed, deliberately altered says Juncker i.e it's not our fault.We've been patient waiting for Greek proposals, which were often delayed, deliberately altered says Juncker i.e it's not our fault.
12.03pm BST12:0312.03pm BST12:03
Juncker seems extremely keen to emphasise the 'i have done everything i can line'Juncker seems extremely keen to emphasise the 'i have done everything i can line'
12.03pm BST12:0312.03pm BST12:03
I put the talks on a more political level, as Greek authorities wished, says Juncker. We did not leave the talks to technocrats.I put the talks on a more political level, as Greek authorities wished, says Juncker. We did not leave the talks to technocrats.
I have done everything I can to deliver a deal, he reiterates.I have done everything I can to deliver a deal, he reiterates.
12.02pm BST12:0212.02pm BST12:02
This is quite an attack on Alexis Tsipras from Juncker.This is quite an attack on Alexis Tsipras from Juncker.
Other European countries have been down “very difficult paths” and took very difficult decisions, he says.Other European countries have been down “very difficult paths” and took very difficult decisions, he says.
We were doing everything we could, working day and night, he says, to get a deal before the Greeks unilaterally terminated talks by calling a referendum.We were doing everything we could, working day and night, he says, to get a deal before the Greeks unilaterally terminated talks by calling a referendum.
Updated at 12.12pm BSTUpdated at 12.12pm BST
11.57am BST11:5711.57am BST11:57
#greece @JunckerEU fears his life's work unravelling#greece @JunckerEU fears his life's work unravelling
11.57am BST11:5711.57am BST11:57
Jean-Claude Juncker, who looks desperately glum, says he was ‘deeply saddened’ by the events of last Saturday.Jean-Claude Juncker, who looks desperately glum, says he was ‘deeply saddened’ by the events of last Saturday.
We saw egotism, tactical games, populist games, says Juncker - “after my efforts, I feel betrayed”.We saw egotism, tactical games, populist games, says Juncker - “after my efforts, I feel betrayed”.
Playing one democracy against the other 18 is not worthy of the great Greek nation, and not fair on Greece’s citizens.Playing one democracy against the other 18 is not worthy of the great Greek nation, and not fair on Greece’s citizens.
I have done everything I could, others did everything they could, and we do not deserve the criticism aimed at us.I have done everything I could, others did everything they could, and we do not deserve the criticism aimed at us.
In one night Europe suffered a major blow and goodwill was blown to the wind, says Juncker. I feel a little betrayed. #GreeceIn one night Europe suffered a major blow and goodwill was blown to the wind, says Juncker. I feel a little betrayed. #Greece
Updated at 12.13pm BSTUpdated at 12.13pm BST
11.53am BST11:5311.53am BST11:53
Juncker begins by reminding us that Greece joined the European Union in the early 19980s.Juncker begins by reminding us that Greece joined the European Union in the early 19980s.
Brussels didn’t want Plato to play in the second division then, and I don’t want it to play there today.Brussels didn’t want Plato to play in the second division then, and I don’t want it to play there today.
"I still don't want to see Plato play in the 2nd division" says @JunckerEU. Very Monty Python."I still don't want to see Plato play in the 2nd division" says @JunckerEU. Very Monty Python.
LIVE now | press conference with @JunckerEU: http://t.co/P0BIU0PzXA #Greece pic.twitter.com/wdogNCfbZjLIVE now | press conference with @JunckerEU: http://t.co/P0BIU0PzXA #Greece pic.twitter.com/wdogNCfbZj
11.50am BST11:5011.50am BST11:50
Juncker press conference on GreeceJuncker press conference on Greece
Heads-up. Jean-Claude Juncker, president of the European Commission, is discussing the Greek crisis now in BrusselsHeads-up. Jean-Claude Juncker, president of the European Commission, is discussing the Greek crisis now in Brussels
It is being streamed live hereIt is being streamed live here
11.48am BST11:4811.48am BST11:48
Angela Merkel is addressing her CDU party now, and warning that “If the euro fails, Europe fails”.Angela Merkel is addressing her CDU party now, and warning that “If the euro fails, Europe fails”.
That’s a phrase she has used before in the debt crisis when the single currency has come under strain. And there’s another familiar line from the chancellor -- that solidarity and reforms go together:That’s a phrase she has used before in the debt crisis when the single currency has come under strain. And there’s another familiar line from the chancellor -- that solidarity and reforms go together:
11.20am BST11:2011.20am BST11:20
Pensioners in Greece’s second city, Thessaloniki, also queuing at their banks this morning in the hope of getting funds - but no luck:Pensioners in Greece’s second city, Thessaloniki, also queuing at their banks this morning in the hope of getting funds - but no luck:
And in Athens, there are reminders of Sunday’s referendum everywhere:And in Athens, there are reminders of Sunday’s referendum everywhere:
Downtown Athens covered in OXI graffiti #Greece #Greferendum pic.twitter.com/dZrXKk820ADowntown Athens covered in OXI graffiti #Greece #Greferendum pic.twitter.com/dZrXKk820A
11.11am BST11:1111.11am BST11:11
Greek journalist Niki Kitsantonis has been told that shopper in Athens have been stocking up on basic goods, confirming what our own Helena Smith reported earlier.Greek journalist Niki Kitsantonis has been told that shopper in Athens have been stocking up on basic goods, confirming what our own Helena Smith reported earlier.
After ATMs + gas stations come supermarkets. In one Athens store, worker refilling shelves said shoppers snapped up spaghetti, other staplesAfter ATMs + gas stations come supermarkets. In one Athens store, worker refilling shelves said shoppers snapped up spaghetti, other staples
Updated at 11.13am BSTUpdated at 11.13am BST
11.06am BST11:0611.06am BST11:06
Looks like Greek cash machines are up and running under the new regime of capital controls:Looks like Greek cash machines are up and running under the new regime of capital controls:
ΑΤΜs now working in #Greece, withdraw limit is 60€ [this does not apply to foreign bills] pic.twitter.com/5PsKDKkxcK pic @MakisSinodinosΑΤΜs now working in #Greece, withdraw limit is 60€ [this does not apply to foreign bills] pic.twitter.com/5PsKDKkxcK pic @MakisSinodinos
11.05am BST11:0511.05am BST11:05
Merkel: Greece must make first move to end standoffMerkel: Greece must make first move to end standoff
Here’s the inside line on Angela Merkel’s meeting with her CDU party today, from Reuters:Here’s the inside line on Angela Merkel’s meeting with her CDU party today, from Reuters:
German Chancellor Angela Merkel told a leadership meeting of her Christian Democrats (CDU) on Monday that it was up to Greece to move in the reform standoff with its euro zone partners, according to participants.German Chancellor Angela Merkel told a leadership meeting of her Christian Democrats (CDU) on Monday that it was up to Greece to move in the reform standoff with its euro zone partners, according to participants.
Merkel also told senior CDU colleagues that decisions on Greece could only be taken on a day-to-day basis given the current level of uncertainty, the participants said.Merkel also told senior CDU colleagues that decisions on Greece could only be taken on a day-to-day basis given the current level of uncertainty, the participants said.
A few minutes earlier, Merkel’s spokesman was telling reporters that the Chancellor was prepared to talk to Alexis Tsipras again.A few minutes earlier, Merkel’s spokesman was telling reporters that the Chancellor was prepared to talk to Alexis Tsipras again.
Breaking: @RegSprecher Merkel ready for talks with @tsipras_eu if he wishes #Greece via @BloombergTVBreaking: @RegSprecher Merkel ready for talks with @tsipras_eu if he wishes #Greece via @BloombergTV
11.02am BST11:0211.02am BST11:02
Analysts at RBC have issued a research note, explaining why Tuesday will be a momentous day:Analysts at RBC have issued a research note, explaining why Tuesday will be a momentous day:
First, the current Greek bail-out programme expires.First, the current Greek bail-out programme expires.
This is important as this means the legal basis on which all potential further bail-outs were dependent expires. As the eurogroup meeting declined to prolong the current programme further that means that at the time of the proposed referendum, there is no contract in place that the Greek authorities could then accept or decline (i.e. technically, there is nothing to vote upon). Furthermore, the European side will find it difficult to then pay out any funds even if the referendum went in favour of any further bail-out. In that case, we reckon, a completely new contract would have to be drawn up that would then have to be passed by all relevant member states’ parliaments.This is important as this means the legal basis on which all potential further bail-outs were dependent expires. As the eurogroup meeting declined to prolong the current programme further that means that at the time of the proposed referendum, there is no contract in place that the Greek authorities could then accept or decline (i.e. technically, there is nothing to vote upon). Furthermore, the European side will find it difficult to then pay out any funds even if the referendum went in favour of any further bail-out. In that case, we reckon, a completely new contract would have to be drawn up that would then have to be passed by all relevant member states’ parliaments.
Second, the IMF payment will (most likely) be missed.Second, the IMF payment will (most likely) be missed.
It seems very unlikely that the Greek authorities can or want to pay the €1.6bn due to the IMF on 30 June. There have been extensive debates about what this technically means and whether that constitutes a default. On the IMF itself, this is not 100% clear. IMF managing director Lagarde said in a previous comment that the IMF would not apply any grace periods and would consider Greece to be in arrears straight away.It seems very unlikely that the Greek authorities can or want to pay the €1.6bn due to the IMF on 30 June. There have been extensive debates about what this technically means and whether that constitutes a default. On the IMF itself, this is not 100% clear. IMF managing director Lagarde said in a previous comment that the IMF would not apply any grace periods and would consider Greece to be in arrears straight away.
Given the acrimonious deliberations and this weekend’s developments this seems possible. On the other hand, the IMF could also apply a four-week grace period before declaring a state of default. If it opted to do so, this could be bridging the time until after the referendum. We actually think that this is a distinct probability.Given the acrimonious deliberations and this weekend’s developments this seems possible. On the other hand, the IMF could also apply a four-week grace period before declaring a state of default. If it opted to do so, this could be bridging the time until after the referendum. We actually think that this is a distinct probability.
10.54am BST10:5410.54am BST10:54
Last night, Alexis Tsipras revealed he had asked European leaders to extend Greece’s bailout beyond Tuesday’s deadline - until the referendum has been held.Last night, Alexis Tsipras revealed he had asked European leaders to extend Greece’s bailout beyond Tuesday’s deadline - until the referendum has been held.
That initial request was rebuffed on Saturday, by finance ministers at the Eurogroup, so Tsipras is now going over their heads.That initial request was rebuffed on Saturday, by finance ministers at the Eurogroup, so Tsipras is now going over their heads.
The FT has now uploaded one of those letters, sent to Luxembourg’s prime minister, in which Tsipras argues that an extension will allow:The FT has now uploaded one of those letters, sent to Luxembourg’s prime minister, in which Tsipras argues that an extension will allow:
a mutually beneficial agreement, to secure fiscal, financial debt sustainability, that will return Greece to growth within the eurozone.a mutually beneficial agreement, to secure fiscal, financial debt sustainability, that will return Greece to growth within the eurozone.
Paragraph in @atsipras letter to PMs requesting (again) bailout extension. Full letter here: http://t.co/YgV3UqybU4 pic.twitter.com/YcbeXRAlTPParagraph in @atsipras letter to PMs requesting (again) bailout extension. Full letter here: http://t.co/YgV3UqybU4 pic.twitter.com/YcbeXRAlTP
10.44am BST10:4410.44am BST10:44
This video shows how Greek pensioners arrived at banks in the hope of accessing their money this morning, but were rebuffed.This video shows how Greek pensioners arrived at banks in the hope of accessing their money this morning, but were rebuffed.
Totally understandably, they look very anxious about the situation; some must be getting tired of the constant media scrum. As one man put it when asked what he was doing:Totally understandably, they look very anxious about the situation; some must be getting tired of the constant media scrum. As one man put it when asked what he was doing:
I am here to get my pension. What else would I be doing here? Looking at the bank?I am here to get my pension. What else would I be doing here? Looking at the bank?
Updated at 10.45am BSTUpdated at 10.45am BST
10.28am BST10:2810.28am BST10:28
UK finance minister George Osborne will update MPs on the crisis later today.UK finance minister George Osborne will update MPs on the crisis later today.
Chancellor of the Exchequer @George_Osborne will give a statement to Parliament on #Greece this afternoonChancellor of the Exchequer @George_Osborne will give a statement to Parliament on #Greece this afternoon
10.27am BST10:2710.27am BST10:27
Harris Georgiades, Cyprus’s finance minister, is telling Bloomberg TV now that he hopes Greece’s capital measures will be temporary, adding:Harris Georgiades, Cyprus’s finance minister, is telling Bloomberg TV now that he hopes Greece’s capital measures will be temporary, adding:
I am very concerned for the Greek people, and I still hope there can be a way out from this very difficult situation.I am very concerned for the Greek people, and I still hope there can be a way out from this very difficult situation.
But a former deputy governor of Cyprus’s central bank, Spyros Stavrinakis, has warned that reopening the banks will be hard.But a former deputy governor of Cyprus’s central bank, Spyros Stavrinakis, has warned that reopening the banks will be hard.
Stavrinakis lived through the 2013 Cyprus crisis, in which capital controls were imposed for almost two years.Stavrinakis lived through the 2013 Cyprus crisis, in which capital controls were imposed for almost two years.
He says:He says:
Once you impose capital controls, you immediately send a message that there is something wrong with the banking sector.Once you impose capital controls, you immediately send a message that there is something wrong with the banking sector.
It is very difficult to phase down and unwind capital controls, once they are imposed, Stavrinakis adds.It is very difficult to phase down and unwind capital controls, once they are imposed, Stavrinakis adds.
Updated at 11.00am BSTUpdated at 11.00am BST
10.23am BST10:2310.23am BST10:23
British tourists visiting Greece can still enjoy a “smooth and fun” stay, claims the Greek government.British tourists visiting Greece can still enjoy a “smooth and fun” stay, claims the Greek government.
It has issued a statement that reminds us that foreigners will not be hit by capital controls; in an attempt to prevent worried holidaymakers going elsewhere.It has issued a statement that reminds us that foreigners will not be hit by capital controls; in an attempt to prevent worried holidaymakers going elsewhere.
Greek govt clearly v worried abt Brits cancelling their holidays. Their London press office just issued this: pic.twitter.com/euvW22o2AiGreek govt clearly v worried abt Brits cancelling their holidays. Their London press office just issued this: pic.twitter.com/euvW22o2Ai
10.15am BST10:1510.15am BST10:15
Helena SmithHelena Smith
Vangelis Kotsos, the president of Chania’s petrol station owners, has just called for calm on the state-run TV channel, ERT 1:Vangelis Kotsos, the president of Chania’s petrol station owners, has just called for calm on the state-run TV channel, ERT 1:
“Panic is mounting, for example I opened at 7:30am and by 10am I had sold the amount (of gas) that I would normally sell by tomorrow afternoon.“Panic is mounting, for example I opened at 7:30am and by 10am I had sold the amount (of gas) that I would normally sell by tomorrow afternoon.
But I foresee that soon things will normalised, more reserves will be brought in.”But I foresee that soon things will normalised, more reserves will be brought in.”
10.11am BST10:1110.11am BST10:11
Siege mentality setting in across GreeceSiege mentality setting in across Greece
Helena SmithHelena Smith
There have been scenes of panic in northern Greece where pensioners have reportedly fainted outside banks in Salonika.There have been scenes of panic in northern Greece where pensioners have reportedly fainted outside banks in Salonika.
From Athens, Helena Smith reports:From Athens, Helena Smith reports:
Reports of panic outside banks, in supermarkets and at petrol stations are now coming through thick and fast. Pensioners, waiting outside closed banks in Salonika, collapsed when it became apparent that the lenders weren’t going to open and they would not be getting their monthly allowance.Reports of panic outside banks, in supermarkets and at petrol stations are now coming through thick and fast. Pensioners, waiting outside closed banks in Salonika, collapsed when it became apparent that the lenders weren’t going to open and they would not be getting their monthly allowance.
An announcement may come later today:An announcement may come later today:
#Greece's FinMinistry to announce at 4 pm local time, which bank branches will be open for pensioners to withdraw pensions #capital_controls#Greece's FinMinistry to announce at 4 pm local time, which bank branches will be open for pensioners to withdraw pensions #capital_controls
In Crete, gas stations were also forced to close after running out of petrol.In Crete, gas stations were also forced to close after running out of petrol.
Vangelis Kotsos, president of gas station owners in Chania, said around 50% of gas stations had now run dry and described scenes of chaos as nervous Greek motorists (and presumably visiting tourists) flocked to gas stations to fill up.Vangelis Kotsos, president of gas station owners in Chania, said around 50% of gas stations had now run dry and described scenes of chaos as nervous Greek motorists (and presumably visiting tourists) flocked to gas stations to fill up.
“A lot have been coming in carrying cans so they have extra reserves.”“A lot have been coming in carrying cans so they have extra reserves.”
I have been getting word from friends around the capital of panic in supermarkets now being stampeded by consumers worried that stocks will run out.I have been getting word from friends around the capital of panic in supermarkets now being stampeded by consumers worried that stocks will run out.
“Mayhem in Carrefour Kolonaki,” said one text, referring to Greece’s upmarket district above Syntagma Square.“Mayhem in Carrefour Kolonaki,” said one text, referring to Greece’s upmarket district above Syntagma Square.
Panicked buyers were snapping up everything in sight, not least staple foods such as sugar and flour.Panicked buyers were snapping up everything in sight, not least staple foods such as sugar and flour.
By mid-morning it has become clear that a siege mentality appears to have taken hold of Greeks following the shock announcement of the closure of banks and imposition of capital controls.By mid-morning it has become clear that a siege mentality appears to have taken hold of Greeks following the shock announcement of the closure of banks and imposition of capital controls.
Updated at 1.29pm BSTUpdated at 1.29pm BST
10.02am BST10:0210.02am BST10:02
The French president is now tweeting that a Greek deal is still possible...The French president is now tweeting that a Greek deal is still possible...
Je souhaite que la négociation avec la #Grèce reprenne, un accord reste possible. La France est toujours disponible pour le dialogue.Je souhaite que la négociation avec la #Grèce reprenne, un accord reste possible. La France est toujours disponible pour le dialogue.
...and insisting that the French economy is stronger than four years ago and has nothing to fear from the Greek crisis........and insisting that the French economy is stronger than four years ago and has nothing to fear from the Greek crisis.....
Aujourd'hui l’économie française est plus robuste qu’il y a 4 ans et n’a rien à craindre de ce qui pourrait se produire. #GrèceAujourd'hui l’économie française est plus robuste qu’il y a 4 ans et n’a rien à craindre de ce qui pourrait se produire. #Grèce
10.00am BST10:0010.00am BST10:00
Richard Hunter, Head of Equities at Hargreaves Lansdown Stockbrokers, says markets are facing a “triple whammy” of negative news.Richard Hunter, Head of Equities at Hargreaves Lansdown Stockbrokers, says markets are facing a “triple whammy” of negative news.
As well as the Greek crisis, there is Friday’s terrorist atrocities in Tunisia, France and Kuwait, and another slump in Chinese markets.As well as the Greek crisis, there is Friday’s terrorist atrocities in Tunisia, France and Kuwait, and another slump in Chinese markets.
The IMF deadline tomorrow now looms large, whilst investors will now be looking for any possibility of an eleventh hour rescue to prevent either or both of a Greek default or exit.The IMF deadline tomorrow now looms large, whilst investors will now be looking for any possibility of an eleventh hour rescue to prevent either or both of a Greek default or exit.
Meanwhile, Friday’s terrorist attacks have added to the generally risk averse sentiment, with travel companies being inevitably hit. In addition, and despite a relaxation of bank reserves and a further interest rate cut, Chinese markets fell another 7%, pulling it into a technical bear market, while also implying that the Chinese authorities are keen to act extremely quickly to stem further declines.Meanwhile, Friday’s terrorist attacks have added to the generally risk averse sentiment, with travel companies being inevitably hit. In addition, and despite a relaxation of bank reserves and a further interest rate cut, Chinese markets fell another 7%, pulling it into a technical bear market, while also implying that the Chinese authorities are keen to act extremely quickly to stem further declines.
9.54am BST09:549.54am BST09:54
French president Francois Hollande has emerged from an emergency cabinet meeting on Greece, to announce that there is still time, just, to save a deal.French president Francois Hollande has emerged from an emergency cabinet meeting on Greece, to announce that there is still time, just, to save a deal.
Hollande said:Hollande said:
“There are a few hours before the negotiation is definitively closed, in particular for the prolongation of the Greek aid programme.“There are a few hours before the negotiation is definitively closed, in particular for the prolongation of the Greek aid programme.
I wish, if the Greeks, if their government, so decide, that talks resume.”I wish, if the Greeks, if their government, so decide, that talks resume.”
Hollande also warned that Sunday’s referendum is a choice between staying in the eurozone and taking “the risk to leave it.”Hollande also warned that Sunday’s referendum is a choice between staying in the eurozone and taking “the risk to leave it.”
#GreeceCrisis MT @ThomaisERT_RIK Hollande: The #Greferendumis a "sovereign choice" by the Greeks on whether they stay of leave the euro#GreeceCrisis MT @ThomaisERT_RIK Hollande: The #Greferendumis a "sovereign choice" by the Greeks on whether they stay of leave the euro
French President Hollande: Greek referendum is choice to remain in Euro or likely exit. (DJ) #Greferendum #GrexitFrench President Hollande: Greek referendum is choice to remain in Euro or likely exit. (DJ) #Greferendum #Grexit
Updated at 10.09am BSTUpdated at 10.09am BST
9.45am BST09:459.45am BST09:45
9.43am BST09:439.43am BST09:43
The market turmoil has forced Switzerland’s central bank to intervene in the currency markets to weaken the Swiss franc.The market turmoil has forced Switzerland’s central bank to intervene in the currency markets to weaken the Swiss franc.
Thomas Jordan, head of the Swiss National Bank, revealed this morning that the SNB stepped in, to protect Switzerland being hit by the Greek crisis.Thomas Jordan, head of the Swiss National Bank, revealed this morning that the SNB stepped in, to protect Switzerland being hit by the Greek crisis.
He also told a financial conference in Bern that the Greek situation remained uncertain:He also told a financial conference in Bern that the Greek situation remained uncertain:
And this chart shows how the euro had plunged against the Swiss franc in early trading, only to bounce back as the SNB revealed it had intervened:And this chart shows how the euro had plunged against the Swiss franc in early trading, only to bounce back as the SNB revealed it had intervened:
SNB's Jordan: Intervened in Franc overnight as #Greece is a very critical situation and SNB is watching closely. pic.twitter.com/zQFzRVPOi8SNB's Jordan: Intervened in Franc overnight as #Greece is a very critical situation and SNB is watching closely. pic.twitter.com/zQFzRVPOi8
9.31am BST09:319.31am BST09:31
A war of tweets appears to have broken out between Athens and Brussels this morning.A war of tweets appears to have broken out between Athens and Brussels this morning.
This follows the European Commission’s claims on Sunday that Greece had been offered a sweetened version of a cash-for-reform deal to avert bankruptcy, when prime minister Alexis Tsipras announced his shock referendum.This follows the European Commission’s claims on Sunday that Greece had been offered a sweetened version of a cash-for-reform deal to avert bankruptcy, when prime minister Alexis Tsipras announced his shock referendum.
Our correspondent Helena Smith reports from the Greek capital.Our correspondent Helena Smith reports from the Greek capital.
The radical leftists in power in Athens are not backing down. Denying that a better offer had ever been made, Minister of state Nikos Pappas, the Greek prime minister’s closest ally, took to twitter this morning to denounce what government officials are calling the chicanery now being spun out of Brussels.The radical leftists in power in Athens are not backing down. Denying that a better offer had ever been made, Minister of state Nikos Pappas, the Greek prime minister’s closest ally, took to twitter this morning to denounce what government officials are calling the chicanery now being spun out of Brussels.
“Look at the “non existent” ultimatum,” he tweeted under a picture showing him holding a sheet of proposals from creditors. “They are asking us to say “YES to everything.”“Look at the “non existent” ultimatum,” he tweeted under a picture showing him holding a sheet of proposals from creditors. “They are asking us to say “YES to everything.”
Ιδού το "ανύπαρκτο" τελεσίγραφο. Ζητάνε να πούμε "ΝΑΙ σε όλα". pic.twitter.com/j2Gn3g3gJYΙδού το "ανύπαρκτο" τελεσίγραφο. Ζητάνε να πούμε "ΝΑΙ σε όλα". pic.twitter.com/j2Gn3g3gJY
On Sunday EU commission chief Jean-Claude Juncker, addressing Greek voters directly, published what he said was a sweetened version of the deal the Athens government was looking at when Tsipras made his bombshell announcement.On Sunday EU commission chief Jean-Claude Juncker, addressing Greek voters directly, published what he said was a sweetened version of the deal the Athens government was looking at when Tsipras made his bombshell announcement.
In a tweet also released in Greek (Juncker’s spokesman Margaritis Schinas is Greek), the EU chief wrote:In a tweet also released in Greek (Juncker’s spokesman Margaritis Schinas is Greek), the EU chief wrote:
“In the interest of transparency and for the information of the Greek people”“In the interest of transparency and for the information of the Greek people”
and linked to a 10-page document of budgetary and other “prior actions” set by the EU and IMF as conditions for releasing cash to Greece.and linked to a 10-page document of budgetary and other “prior actions” set by the EU and IMF as conditions for releasing cash to Greece.
Για την ενημέρωση του ελληνικού λαού και σε πνεύμα διαφάνειας η Ευρωπαϊκή Επιτροπή ενημερώνει. http://t.co/dgkGu2AywXΓια την ενημέρωση του ελληνικού λαού και σε πνεύμα διαφάνειας η Ευρωπαϊκή Επιτροπή ενημερώνει. http://t.co/dgkGu2AywX
9.17am BST09:179.17am BST09:17
Coming up: Juncker and Merkel....Coming up: Juncker and Merkel....
Reminder: EC president Jean-Claude Juncker will speak about the Greek situation in two and a half hours (11.45am BST/1.45pm Athens)Reminder: EC president Jean-Claude Juncker will speak about the Greek situation in two and a half hours (11.45am BST/1.45pm Athens)
Shortly afterwards (and possibly clashing), Angela Merkel is due in the German parliament to discuss the crisis. She also due to hold emergency meetings today with German political party leaders, and her own CDU party.Shortly afterwards (and possibly clashing), Angela Merkel is due in the German parliament to discuss the crisis. She also due to hold emergency meetings today with German political party leaders, and her own CDU party.
Le Président @JunckerEU fera annonce à 12h45 sur la voie à suivre avec #Grèce. Les dernières prop. @EU_Commission sont connues et publiéesLe Président @JunckerEU fera annonce à 12h45 sur la voie à suivre avec #Grèce. Les dernières prop. @EU_Commission sont connues et publiées
Reminder: #Merkel to address Bundestag at 12.30 BST today. We'll follow and translate live from @OpenEurope #Greece #GreferendumReminder: #Merkel to address Bundestag at 12.30 BST today. We'll follow and translate live from @OpenEurope #Greece #Greferendum
9.05am BST09:059.05am BST09:05
Pensioners queuing at Greek banksPensioners queuing at Greek banks
Back in Athens, pensioners have been queuing outside some bank branches - even though the system has been shut down for a week.Back in Athens, pensioners have been queuing outside some bank branches - even though the system has been shut down for a week.
According to the Kathimerini newspaper, “some local lenders’ branches were expected to open on Monday in order to services pensioners unable to use credit or cash cards to retrieve their pensions”.According to the Kathimerini newspaper, “some local lenders’ branches were expected to open on Monday in order to services pensioners unable to use credit or cash cards to retrieve their pensions”.
Banks were expected to release more information regarding which branches would open their doors later in the day, Kathimerini adds.Banks were expected to release more information regarding which branches would open their doors later in the day, Kathimerini adds.
Banks are closed but have seen quite a few pensioners, many of whom usually use banks rather than ATMs, outside them pic.twitter.com/SX6q1phb1vBanks are closed but have seen quite a few pensioners, many of whom usually use banks rather than ATMs, outside them pic.twitter.com/SX6q1phb1v
8.51am BST08:518.51am BST08:51
All Europe’s main stock markets are deep in the red, after a nervy opening session.All Europe’s main stock markets are deep in the red, after a nervy opening session.
8.47am BST08:478.47am BST08:47
Jessica ElgotJessica Elgot
David Cameron explains that a Downing Street team had been preparing for months for the possibility of a Greek exit from the Euro, and said he would put the “final touches” to a plan in a meeting later today.David Cameron explains that a Downing Street team had been preparing for months for the possibility of a Greek exit from the Euro, and said he would put the “final touches” to a plan in a meeting later today.
“We must make sure we are prepared for any eventuality, that means advising British tourists, looking after British pensioners and people receiving benefits who are living in Greece as well as dealing with issues of Greek banks.”“We must make sure we are prepared for any eventuality, that means advising British tourists, looking after British pensioners and people receiving benefits who are living in Greece as well as dealing with issues of Greek banks.”
The prime minister skirted around whether a Greek departure from the eurozone would make Britain’s renegotiation with the European Union ahead of the UK’s own “in-out” referendum easier.The prime minister skirted around whether a Greek departure from the eurozone would make Britain’s renegotiation with the European Union ahead of the UK’s own “in-out” referendum easier.
“If this organisation is going to would it has to be flexible enough to work for both Eurozone members and countries that I believer are never going to join the Euro, like Britain. My point is that this organisation needs to have the flexibility of a network not the rigidity of a block. This is a two-way street... there are lots of difficult negotiations to come but every journey starts with a single step, as they say.”“If this organisation is going to would it has to be flexible enough to work for both Eurozone members and countries that I believer are never going to join the Euro, like Britain. My point is that this organisation needs to have the flexibility of a network not the rigidity of a block. This is a two-way street... there are lots of difficult negotiations to come but every journey starts with a single step, as they say.”
8.40am BST08:408.40am BST08:40
Cameron: Greek referendum is about eurozone membershipCameron: Greek referendum is about eurozone membership
David Cameron has just discussed the Greek crisis on BBC Radio 4’s Today Programme.David Cameron has just discussed the Greek crisis on BBC Radio 4’s Today Programme.
Does he believe Greece should leave the euro? (the Guardian revealed on Friday that the UK PM told a fellow EU leader that it “might be better” for Greece to withdraw from the eurozone)Does he believe Greece should leave the euro? (the Guardian revealed on Friday that the UK PM told a fellow EU leader that it “might be better” for Greece to withdraw from the eurozone)
Britain’s interest are best served by an agreement between Greece and the eurozone that delivers the security that we want to see, Cameron replies.Britain’s interest are best served by an agreement between Greece and the eurozone that delivers the security that we want to see, Cameron replies.
Will Sunday’s referendum effectively be a vote on whether to stay in the euro?Will Sunday’s referendum effectively be a vote on whether to stay in the euro?
I think that’s what it will come down to, Cameron replies.I think that’s what it will come down to, Cameron replies.
If the Greek people vote yes, they are voting for the sort of deal put forward by the institutions....If the Greek people vote yes, they are voting for the sort of deal put forward by the institutions....
“If they vote no, I find it hard to see how that is consistent with staying in the euro, because there would be, I think, a very significant default and a very significant problem.”“If they vote no, I find it hard to see how that is consistent with staying in the euro, because there would be, I think, a very significant default and a very significant problem.”
#Cameron: Greek Referendum ‘No’ Vote May Lead to Debt Default#Cameron: Greek Referendum ‘No’ Vote May Lead to Debt Default
Cameron adds that Britain has drawn up contingency plan for Greece, and he’ll put the final touches to it today.Cameron adds that Britain has drawn up contingency plan for Greece, and he’ll put the final touches to it today.
Most of the interview covered the terrorism attacks in Tunisia - my colleague Andrew Sparrow covered it in his Politics Live blog.Most of the interview covered the terrorism attacks in Tunisia - my colleague Andrew Sparrow covered it in his Politics Live blog.
Updated at 8.54am BSTUpdated at 8.54am BST
8.26am BST08:268.26am BST08:26
The overall European banking index has tumbled by over 4% in the opening minutes of trading, as investors react to last weekend’s drama.The overall European banking index has tumbled by over 4% in the opening minutes of trading, as investors react to last weekend’s drama.
Deutsche Bank’s Francis Yared explains that there will be short, and long-term consequences of the Greek crisis:Deutsche Bank’s Francis Yared explains that there will be short, and long-term consequences of the Greek crisis:
Given market optimism towards a Greek deal over the last week, the initial risk-off move could be pronounced.Given market optimism towards a Greek deal over the last week, the initial risk-off move could be pronounced.
Post the initial shock, the ECB’s response and sticky domestic capital should limit contagion. Longer term, the events in Greece are a stark reminder that the current eurozone architecture is vulnerable to domestic politics. This in itself will justify some structural risk premium unless there is an institutional change or further economic convergencePost the initial shock, the ECB’s response and sticky domestic capital should limit contagion. Longer term, the events in Greece are a stark reminder that the current eurozone architecture is vulnerable to domestic politics. This in itself will justify some structural risk premium unless there is an institutional change or further economic convergence
Updated at 8.27am BSTUpdated at 8.27am BST
8.10am BST08:108.10am BST08:10
Bank shares hammeredBank shares hammered
Bank shares across Europe are in retreat:Bank shares across Europe are in retreat:
8.07am BST08:078.07am BST08:07
European markets tumble at the openEuropean markets tumble at the open
The German DAX and French CAC have both tumbled by around 4.4% at the open.The German DAX and French CAC have both tumbled by around 4.4% at the open.
And the Portuguese stock market plunged by around 5.8%, as the Greek crisis ripples through the markets.And the Portuguese stock market plunged by around 5.8%, as the Greek crisis ripples through the markets.
8.03am BST08:038.03am BST08:03
Europe’s stock markets are opening... and the FTSE 100 index has promptly tumbled by 2.2%, or 147 points.Europe’s stock markets are opening... and the FTSE 100 index has promptly tumbled by 2.2%, or 147 points.
8.02am BST08:028.02am BST08:02
France’s finance minister, Michel Sapin, has admitted that Greece could leave the euro, in an interview with France Inter radio this morning.France’s finance minister, Michel Sapin, has admitted that Greece could leave the euro, in an interview with France Inter radio this morning.
Of a euro exit for Greece, he said:Of a euro exit for Greece, he said:
“It’s always a possibility, it’s a risk.”“It’s always a possibility, it’s a risk.”
Sapin insisted that negotiations could resume at any time -- and added that Athens must decide:Sapin insisted that negotiations could resume at any time -- and added that Athens must decide:
“Do you want to continue the negotiations or do you want to take the risk of exiting the euro?”“Do you want to continue the negotiations or do you want to take the risk of exiting the euro?”
7.57am BST07:577.57am BST07:57
The Economist Intelligence Unit reckons Grexit is now more likely than not:The Economist Intelligence Unit reckons Grexit is now more likely than not:
#Greece referendum is game changer. Team revise probability of Grexit to 60%. Vote likely to either reject bailout deal, or reject Gov.#Greece referendum is game changer. Team revise probability of Grexit to 60%. Vote likely to either reject bailout deal, or reject Gov.
7.56am BST07:567.56am BST07:56
El-Erian: 85% chance of GrexitEl-Erian: 85% chance of Grexit
Mohamed El-Erian, the chief economic adviser at German financial services firm Allianz, believes there is only a 15% chance that Greece will stay in the eurozone.Mohamed El-Erian, the chief economic adviser at German financial services firm Allianz, believes there is only a 15% chance that Greece will stay in the eurozone.
He told Bloomberg this morning that Greece will probably be forced to leave the single currency in the weeks ahead, saying:He told Bloomberg this morning that Greece will probably be forced to leave the single currency in the weeks ahead, saying:
“There’s an 85 percent probability that Greece will be forced to leave the euro zone.”“There’s an 85 percent probability that Greece will be forced to leave the euro zone.”
“What we are seeing here is what economists call the sudden stop, when the payment system stops. The logic of a sudden stop is a massive economic contraction, social unrest and it’s going to make continued membership of the euro zone very difficult for Greece.“What we are seeing here is what economists call the sudden stop, when the payment system stops. The logic of a sudden stop is a massive economic contraction, social unrest and it’s going to make continued membership of the euro zone very difficult for Greece.
7.50am BST07:507.50am BST07:50
Those capital controls in full:Those capital controls in full:
Claire PhippsClaire Phipps
Overnight, the Greek government released details of its capital control measures..Overnight, the Greek government released details of its capital control measures..
Here are the key points:Here are the key points:
All banks shut until 6 JulyAll banks shut until 6 July
All Greek banks – including branches of foreign banks – will remain closed until after the referendum on the bailout proposals. The government says they will reopen on Tuesday 7 July.All Greek banks – including branches of foreign banks – will remain closed until after the referendum on the bailout proposals. The government says they will reopen on Tuesday 7 July.
ATM withdrawals limited to €60 a dayATM withdrawals limited to €60 a day
Cash machine withdrawals will be capped until 6 July. Many machines are already reported to have run out of bank notes, although the government said ATMs should “operate normally again by Monday noon at the latest”.Cash machine withdrawals will be capped until 6 July. Many machines are already reported to have run out of bank notes, although the government said ATMs should “operate normally again by Monday noon at the latest”.
The €60 limit is per bank card. The limit can be changed by the finance minister.The €60 limit is per bank card. The limit can be changed by the finance minister.
Foreign bank cards exempted from controlsForeign bank cards exempted from controls
People using a credit or debit card issued in a foreign country will not be affected by the limits on ATM withdrawals. Thousands of foreign tourists currently staying in Greece could still be affected by cash machines running dry, however, and the finance minister could yet set withdrawal limits here too.People using a credit or debit card issued in a foreign country will not be affected by the limits on ATM withdrawals. Thousands of foreign tourists currently staying in Greece could still be affected by cash machines running dry, however, and the finance minister could yet set withdrawal limits here too.
Stock exchange closed on MondayStock exchange closed on Monday
The Athens stock exchange will not open on Monday.The Athens stock exchange will not open on Monday.
Bank card payments ‘as normal’Bank card payments ‘as normal’
Paying by credit or debit card in shops and between Greek bank accounts should continue to work as normal.Paying by credit or debit card in shops and between Greek bank accounts should continue to work as normal.
Internet banking ‘unaffected’Internet banking ‘unaffected’
The government statement said online transactions inside Greece will not be affected.The government statement said online transactions inside Greece will not be affected.
Foreign transfers prohibitedForeign transfers prohibited
Transfers of money to destinations outside Greece are prohibited and will require approval from a Ministry of Finance commission.Transfers of money to destinations outside Greece are prohibited and will require approval from a Ministry of Finance commission.
Other transactions subject to approvalOther transactions subject to approval
A new banking transactions approval committee will have to approve, on a case-by-case basis, any urgent transactions deemed “necessary to safeguard a public or social interest”, such as medical expenses or pharmaceutical imports.A new banking transactions approval committee will have to approve, on a case-by-case basis, any urgent transactions deemed “necessary to safeguard a public or social interest”, such as medical expenses or pharmaceutical imports.
Interest surcharges prohibitedInterest surcharges prohibited
Interest surcharges on due payments are prohibited during the period of closure.Interest surcharges on due payments are prohibited during the period of closure.
Penalties for banks breaching controlsPenalties for banks breaching controls
Banks breaching the rules face fines of up to 10% of the amount of any transaction violating the control measures.Banks breaching the rules face fines of up to 10% of the amount of any transaction violating the control measures.
What will happen after 6 July?What will happen after 6 July?
The statement allows for the “bank holiday period” to be extended – or shortened – by the finance minister.The statement allows for the “bank holiday period” to be extended – or shortened – by the finance minister.
Updated at 10.00am BSTUpdated at 10.00am BST
7.44am BST07:447.44am BST07:44
Asian markets in the redAsian markets in the red
Overnight, markets from Mumbai to Tokyo were rattled by the Greek debt crisis:Overnight, markets from Mumbai to Tokyo were rattled by the Greek debt crisis:
Updated at 7.45am BSTUpdated at 7.45am BST
7.37am BST07:377.37am BST07:37
Introduction: Greek crisis throws markets into turmoilIntroduction: Greek crisis throws markets into turmoil
Good morning.Good morning.
The Greek debt crisis is set to sent turmoil through Europe’s financial markets this morning, as the looming prospect of Greece plunging out of the eurozone sends panic through trading floors.The Greek debt crisis is set to sent turmoil through Europe’s financial markets this morning, as the looming prospect of Greece plunging out of the eurozone sends panic through trading floors.
Shares are set to tumble in London, Frankfurt, Paris and beyond, after a dramatic weekend which began with Alexis Tsipras announce a referendum on bailout terms next Sunday - and ended with the imposition of capital controls and a bank holiday for at least a week.Shares are set to tumble in London, Frankfurt, Paris and beyond, after a dramatic weekend which began with Alexis Tsipras announce a referendum on bailout terms next Sunday - and ended with the imposition of capital controls and a bank holiday for at least a week.
In Greece, people are facing up to the news that banks will remain shut for at least a week - and that they will be restricted to taking out €60 per day at the cash machines.In Greece, people are facing up to the news that banks will remain shut for at least a week - and that they will be restricted to taking out €60 per day at the cash machines.
Greece crisis deepens as banks close for a week after weekend that shook euroGreece crisis deepens as banks close for a week after weekend that shook euro
Germany’s DAX index is predicted to plunge by 5% - an alarming selloff - while Britain’s FTSE 100 is on track to shed over 2% when trading begins at 8am BST.Germany’s DAX index is predicted to plunge by 5% - an alarming selloff - while Britain’s FTSE 100 is on track to shed over 2% when trading begins at 8am BST.
European government bonds could also come under pressure, if investors calculate that the eurozone debt crisis is going to spread.European government bonds could also come under pressure, if investors calculate that the eurozone debt crisis is going to spread.
Asian stock markets have already been through a torrid day, with Japan’s Nikkei tumbling almost 3%. And the euro has already shed around 1% against the US dollar.Asian stock markets have already been through a torrid day, with Japan’s Nikkei tumbling almost 3%. And the euro has already shed around 1% against the US dollar.
Here’s our overnight story:Here’s our overnight story:
Greece crisis: markets begin to tumble as investors fleeGreece crisis: markets begin to tumble as investors flee
Europe’s political leaders are also scrambling to address the crisis, with Greece now on track to exit its bailout tomorrow night and default on its €1.6bn repayment to the International Monetary Fund.Europe’s political leaders are also scrambling to address the crisis, with Greece now on track to exit its bailout tomorrow night and default on its €1.6bn repayment to the International Monetary Fund.
European Commission head Jean-Claude Juncker is due to hold a press conference at 10.45am BST to discuss the latest developments on Greece.European Commission head Jean-Claude Juncker is due to hold a press conference at 10.45am BST to discuss the latest developments on Greece.
In Berlin, German Chancellor Angela Merkel has called an emergency meeting with the heads of parliamentary groups and party leaders today, while French President Francois Hollande will chair crisis talks with key ministers in Paris this morning.In Berlin, German Chancellor Angela Merkel has called an emergency meeting with the heads of parliamentary groups and party leaders today, while French President Francois Hollande will chair crisis talks with key ministers in Paris this morning.
UK prime minister David Cameron is due to speak on the situation soon - he’s due on Radio 4’s Today Programme this morning (the ten past eight slot).UK prime minister David Cameron is due to speak on the situation soon - he’s due on Radio 4’s Today Programme this morning (the ten past eight slot).
I’ll be tracking all the main events through the day....I’ll be tracking all the main events through the day....