EU: Eurozone stability ‘not in question’ after Greek vote

Supporters of the No vote celebrate after the results of the referendum in the northern Greek port city of Thessaloniki, Sunday, July 5, 2015. (AP)

The stability of the eurozone is not at risk after Greeks voted 'No' to creditors' austerity demands in a weekend referendum, the European Commission vice president for the euro said Monday.

"The stability of the euro area is not in question," Valdis Dombrovskis told a press briefing. "We have everything we need to manage the situation."

The final tally released early Monday showed 61.31 percent of Greeks rejecting creditor demands for further austerity in return for more bailout funds, leaving Greece's eurozone partners scrambling to respond and stock markets in retreat.

The Eurogroup, comprising the 19 finance ministers from countries using the single currency, released a statement saying they expected fresh reform proposals from the Greek government in talks on Tuesday.

The ministers will meet at 1100 GMT on Tuesday, hours before leaders from the eurozone nations hold an extraordinary summit to decide the way forward after the referendum.

Several leaders have described the vote as an in-out decision on Greece's euro membership.

"The place of Greece is and remains in Europe ... all sides need to act responsibly," said Dombrovskis.

"To negotiate now the European Commission needs a mandate from the Eurogroup," he said.

"It is for the summit to determine possible paths forward."

German Chancellor Angela Merkel was also set to meet with French leader Francois Hollande in Paris on Monday amid a flurry of meetings to size up the implications of the vote.

Greece's radical left-wing Prime Minister Alexis Tsipras, who called for a 'No', insisted afterwards the result did not mean a "rupture" with Europe.

Dombrovskis however said there were going to be "very few winners" in the situation, adding that the "negative" outcome of the referendum "has certainly made things more complicated".

Following the vote, Tsipras on Monday let his flamboyant finance minister Yanis Varoufakis go -- a gesture aimed at placating eurozone creditors, who must now decide whether to loan more money to the debt-wracked country or prepare for a "Grexit".

Germany however maintained a hard line, with Berlin saying there was currently "no basis" for talks on a new bailout package or debt relief.

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Last Update: Wednesday, 20 May 2020 KSA 09:46 - GMT 06:46
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