Tsipras urges Greeks to vote "no", Greferendum not about euro
In a televised address to the Greek people on Wednesday, the country's Prime Minister Alexis Tsipras confirmed the country would go ahead with a referendum on 5 July as planned.
Tsipras reiterated his call for Greek people to vote 'no' in Sunday's referendum but said he has no intention to lead Greece out of euro area.
The leader of the ruling leftist Syriza party said Greece will continue to negotiate with its creditors and suggested that by calling the referendum the government had already received improved offer from its creditors.
Sunday's #referendum is not about whether or not #Greece remains in the Eurozone. #dimopsifisma
— Alexis Tsipras (@tsipras_eu) July 1, 2015
“I never expected a democratic Europe not to give space and time [to hold the referendum]. It is a disgrace that we have these scenes of shame because they closed the banks precisely because we wanted to give the people the vote."
Tsipras: Deposits will not be lost
— Kathimerini English (@ekathimerini) July 1, 2015
Read more: Greek banks to remain shut for a week
Tsipras stressed the referendum was not about the country's membership of the European Union (EU), and said a no vote was “a return to European values”.
"I never expected a democratic Europe not to give space and time"
“No means strong pressure for an agreement of social justice, that will punish corruption.”
“They say I have a supposed plan that if you vote 'No' I will take you out of Europe, they are wrong.”
You're being blackmailed & urged to vote Yes to all of institutions' measures without any solution to exiting the crisis. #dimopsifisma #OXI
— Alexis Tsipras (@tsipras_eu) July 1, 2015
Tsipras stressed the country was still at the negotiation table with its European counterparts and international creditors, the European Central Bank, the International Monetary Fund and the European Commission, and he promised to secure a swift deal and to avoid damage to pensions and bank deposits.
He reiterated his previous suggestion that a "no" vote to the terms of a proposed bailout deal by foreign lenders will help bring a better deal rather than a "rupture" with the eurozone.
Analyst Christopher Beauchamp at IG said the comments have deflated some of the optimism that reigned earlier today – "his defiant tone and willingness to believe that a ‘no’ vote would still keep Greece in the euro has caused some ripples of concern".
"I think he’ll get a swift solution if they vote ‘no’, but the solution won’t be the one he expects."
Brenda Kelly, head analyst at London Capital Group, summed up the market's feeling as "almost like we are back to square one now but technically on the back foot".
She added: "The rally in markets this morning underpinned the idea that a Greek deal - whatever it might be - was risk-positive and something of a relief for the beleaguered equity space. Tsipras has proved now that he has few if any bargaining chips.
The referendum is set to go ahead but one questions whether a "no" vote will carry given the dent in credibility that the PM has brought on himself."
Greece faces ECB debt repayments on 20 July and Kelly suggested that the expiration of ECB emergency liquidity assistance (ELA) now seemed "a likely scenario".
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