EC Wants Greece to Remain in Eurozone Despite Widened Gap

© REUTERS / Christian HartmannGreek Prime Minister Alexis Tsipras votes at a polling station in Athens, Greece July 5, 2015
Greek Prime Minister Alexis Tsipras votes at a polling station in Athens, Greece July 5, 2015 - Sputnik International
Subscribe
The "No" result of the Greek referendum widened the gap between Greece and other Eurozone countries, but Greece must remain its member. The referendum's results pose no threat to the Eurozone, Valdis Dombrovskis said.

Vladimir Putin meets with Greek Prime Minister Alexis Tsipras - Sputnik International
Greek Prime Minister Tsipras Plans Phone Conversation With Putin Monday
MOSCOW (Sputnik) — Athens must remain in the Eurozone, European Commission Vice-President for the Euro and Social Dialogue Valdis Dombrovskis said Monday, after the Greek people rejected the international lenders' bailout proposal.

On Sunday, more than 61 percent of Greek voters rejected the lenders-proposed bailout plan, which stipulates spending cuts and tax increases in exchange for further financial assistance to the country.

"One thing is clear. The place of Greece is and remains in euro," Dombrovskis said at the European Commission’s press briefing.

Gap Between Greece, Eurozone Widened by Greek 'No' Vote at Referendum

The differences between Greece and other Eurozone member states increased after the Greek people voted to not accept its creditors's demands in a referendum, Dombrovskis said.

"The 'no' result unfortunately widens the gap between Greece and other Eurozone countries, there is no easy way out of this crisis. Too much time and too many opportunities have been lost. The Commission is ready to continue its work with Greece. But to be clear the Commission cannot negotiate a new program without a mandate from the Eurogroup," Dombrovskis said.

Eurozone Not Under Threat After Greece Rejecting Bailout Deal

Greek Finance Minister Yanis Varoufakis arrives for his press conference in Athens on July 5, 2015, after early results showed those who rejected further austerity measures in a Greek crucial bailout referendum were poised to win - Sputnik International
Greek Finance Minister Varoufakis Resigns, and Here is Why
The stability of the European monetary zone is not under threat from Sunday’s referendum in Greece rejecting its international creditors’ demands, Dombrovskis said.

"The stability of the euro area is not in question. On June 27, the Eurogroup reiterated that the euro area authorities stand ready to do whatever is necessary to ensure financial stability of the euro area," Dombrovskis said.

"We have everything we need to manage the situation. We have a banking union to ensure the stability of the financial sector. We have the European Stability Mechanism with the firepower of 500 billion euros to help the most vulnerable economies," he continued.

Greece to Struggle to Regain Stability Without Agreeing With Eurozone

Greece will struggle to restore financial stability without an agreement with the rest of the Eurozone member states and without a strategy to exit crisis, the European Commission Vice-President for the Euro and Social Dialogue said.

"We know that the financial situation in Greece is very complicated and the way do address this situation is to reach an agreement with the rest of the Eurogroup countries as as soon as possible. I think it’s going to be very complicated to restore financial stability in Greece without reaching an agreement, without having a credible strategy how to come out of the crisis, how to restore financial stability and economic growth," Dombrovskis said.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала