Greek FinMin Says if Reforms Are Rejected a Referendum Could be Held

Finance Minister Yanis Varoufakis has said it is possible that a referendum could be held if the eurozone rejects Greece’s debt renegotiation plans.

The comments came ahead of Monday’s Eurogroup meeting in Brussels, where Greece is to give detailed plans of its debt and growth terms.

Greek Prime Minister Alexis Tsipras reacted by urging Mr Varoufakis to use “fewer words and more action”.

And the finance ministry clarified that eurozone membership was not in doubt.

In an Italian newspaper interview on Sunday Mr Varoufakis was asked what his options were if a deal was not agreed.

“If needed, if we encounter implacability, we will resort to the Greek people either through elections or a referendum,” he told Corriere della Sera.

This was interpreted by some as a threat to leave the eurozone if talks broke down, something the Greek government was quick to deny.

Greek officials pointed out that the words “for the euro” had been added to Mr Varoufakis’s remarks in brackets in the article. Greece’s eurozone membership was “a given” and did not form any part of negotiations with the Eurogroup, they added.

Mr Varoufakis later criticised the reports as “wilful attempts to undermine the good course” of attempts to agree a deal with creditors.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza