Eurozone Nations to Hold Emergency Summit on Greece Tuesday

MOSCOW (Sputnik) — On Sunday, the majority of Greeks voted "No" to the lender-proposed bailout deal comprising a set of austerity measures, including pension cuts and tax increases, in exchange for a new financial aid package for the country.

The referendum was held after debt-ridden Greece and its major international lenders — the European Central Bank, the International Monetary Fund and Eurozone nations — failed to reach a bailout agreement before the previous aid program expired on June 30.

Tuesday's summit was initiated by German Chancellor Angela Merkel and French President Francois Hollande. Both leaders agree that the outcome of the Greek referendum should be respected.

Prior to the summit, the Eurogroup will also hold a meeting on Tuesday to discuss the Greek debt issue.

Italian Prime Minister Matteo Renzi said on Monday that both the upcoming Eurogroup meeting and the emergency Eurozone summit must lead to a definitive solution to the Greek debt crisis.

Also on Monday, Greek Finance Minister Yanis Varoufakis announced his resignation. He said in a statement that the move was motivated by a desire to help Prime Minister Alexis Tsipras reach an agreement with the creditors. Varoufakis explained that he had become aware that some Eurogroup participants would prefer him to be absent from the bailout talks.

Niels Annen, a foreign policy spokesman for the Social Democratic Party in the German parliament, has said that Varoufakis' resignation could mean that Athens is open to new proposals.

Greece's total debt currently stands at $350 billion, of which nearly $270 billion is owed to its main international creditors.