ATHENS—Greeks took sides Thursday on a looming referendum on
creditors' demands that could decide the country's future, as a top
European official warned that Greece doesn't belong in the eurozone
if it isn't willing to take up reforms.
The referendum called for Sunday is splitting voters and
spreading dissent inside the government as the country faces a
potentially devastating bankruptcy. Eurozone finance ministers say
there will be no further talks until after the vote.
Moderate politicians both in and outside of Prime Minister
Alexis Tsipras's Syriza party are afraid that a "no" vote will lead
to an exit from the euro. Mr. Tsipras has insisted that voter
rejection of creditor demands would give him more leverage in
negotiations for desperately needed funded, a claim European
leaders have denied.
"The day after the referendum we will be united in the country's
efforts to overcome this economic crisis," Mr. Tsipras said during
a visit to the defense ministry.
Greece's only option is Europe and the eurozone, Greek President
Prokopis Pavlopoulos argued.
"The referendum serves democracy only if it is taking place
under conditions that don't allow division," Mr. Pavlopoulos said
during a meeting with the president of the National Bank. While in
parliament, Mr. Pavlopoulos had supported the austerity measures
Greece undertook in exchange for a €245 billion bailout that
expired on Tuesday.
Greece became the first developed country to default on the
International Monetary Fund after it missed a $1.73 billion
rescue-program payment the same day.
Ordinary Greeks are feeling the pressure. A surge of deposit
withdrawals forced the country close bank and to limit cash machine
withdrawals to €60 ($66) a day.
On Wednesday, European officials dismissed a compromise bid from
Athens as insufficient to revive negotiations, saying there would
be no further bailout talks with Greece until after its Sunday
referendum.
If Greeks vote "no," there will no longer be any basis for the
other euro area countries to support Greece, Jeroen Dijsselbloem,
the Dutch finance minister who has presided over talks with his
eurozone counterparts, said.
That doesn't mean that a "no" vote entails Greece automatically
leaving the monetary union, he said. But he stressed it would be an
illusion for voters to believe they would be in a position to
negotiate a better bailout package.
In a sign of the bubbling dissent in the ruling coalition, two
lawmakers in Syriza's junior coalition partner, Independent Greeks,
said Thursday they intend to vote "yes" in the referendum, while a
third asked the government to withdraw the referendum. One of those
who said he would vote "yes" was expelled from the parliamentary
group and asked to give up his seat.
Government spokesman Gabriel Sakellaridis said negotiations with
the country's international creditors will start again Monday if
Greeks vote 'no.'
Archie van Riemsdijk in Amsterdam contributed to this
article.
Write to Nektaria Stamouli at nektaria.stamouli@wsj.com
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