Greece referendum rejects reforms; Eurozone members to meet

greece

July 06, 2015 (LBO) – European Commission after the result of the Greece referendum has called Eurozone members and the Heads of the EU institutions for an immediate discussion.

Releasing a statement the European Commission said its President Jean-Claude Juncker will address the European Parliament in Strasbourg on Tuesday.

“President Juncker is consulting tonight and tomorrow with the democratically elected leaders of the other 18 Eurozone members as well as with the Heads of the EU institutions,” the statement said.

“He will have a conference call among the “Euro-Institutionals” (with the President of the Euro Summit, the President of the Euro Group and the President of the European Central Bank) on Monday morning,”

Greece people on Sunday rejected spending cuts and tax increases demanded by the European Commission, the European Central Bank and the International Monetary Fund with a clear 61 percent ‘NO’ vote at Sunday’s referendum.

The ballot of the referendum was as follows:

Should the proposal that was submitted by the European Commission, the European Central Bank, and the International Monetary Fund at the Eurogroup of 25 June 2015, which consists of two parts that together constitute their comprehensive proposal, be accepted?

greece-3

Though people of Greece rejected reforms proposed by EU countries, an immediate injection of funds through Emergency Liquidity Assistance of European Central Bank will be necessary to save the country from going into bankruptcy, analysts said.

The Greece’s leftist government is ahead of a deep financial crisis that will put major banks in the country in to insolvency within few days.

Meanwhile the President of the European Council has also called an urgent Euro Summit on Tuesday to discuss the future of Greece as well as the Eurozone.

The European Council comprises the college of heads of state or government of EU member states as well as the President of the European Commission, and provides political direction to the European Union.