European Commission President Jean-Claude Juncker expected to make new proposals in bid to end financial crisis.
Photo: EPA/SIMELA PANTZARTZI
by Al Jazeera
The president of the European Commission is expected to make new proposals to try to avoid a Greek default, the EU commissioner of economic affairs has said, adding that there was still room to negotiate an end to the crisis.
Jean-Claude Juncker “will indicate the route to follow”, Pierre Moscovici told French radio on Monday, adding there was still “room for negotiation” between Athens and its international creditors.
“I hope everyone will commit themselves to a way of compromise.”
Greek Prime Minister Alexis Tsipras had earlier announced the temporary closure of banks, after the European Central Bank (ECB) said it would not increase additional emergency funding to the country.
In addition, Greece announced on Monday that the country’s stock market will remain closed until July 7.
In a television address on Sunday, Tsipras said that the government will also start imposing capital controls ahead of a looming deadline on Tuesday.
The country needs to make a $1.8bn payment to the International Monetary Fund by Tuesday or risk defaulting on its obligations.
The emergency measures were agreed at a cabinet meeting after a gathering of Greece’s systemic stability council, called after eurozone finance ministers refused to extend its bailout beyond Tuesday.
Greek government officials have confirmed that banks will remain closed until July 6 – a day after the planned referendum on bailout deal offered by international creditors.
However, officials said that ATMs will reopen on Monday afternoon, with daily withdrawal limit set at 60 euros ($66).
The leftist government, in a statement, also clarified that tourists staying in Greece and anyone with a credit card issued in a foreign country will not be affected by measures to limit bank withdrawals.
Japan stocks plunged more than two percent on Monday, with investor sentiment hit by fears of a Greek default. The Nikkei went down more than 500 points at one point during early trading.
The latest development came as the Greek parliament decided to back Tsipras’ call for a referendum on the country’s bailout deal with international creditors.
The referendum planned for July 5 was approved by at least 179 deputies out of a total of 300 politicians.
Tsipras’ leftist Syriza party and allied politicians voted in favour of the referendum that has angered its creditors who earlier rejected the debt-ridden country’s request for a bailout extension.
