Greek FM Varoufakis threatens lawsuit against Commission
Business |
Anger and fear in Greece as closed banks make life grim; Greece formally in default on IMF payments as of Tuesday
Greek Finance Minister Yanis Varoufakis told the press on Tuesday that his government would sue the European Commission for the imposition of capital controls on banks, and against an eventual expulsion from the euro system.
Varoufakis said Greece would seek an injunction in the European Court of Justice to end capital controls and to block any attempt to expel Greece from the euro system.
"The Greek government will make use of all our legal rights," Varoufakis warned.
"We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable," he said.
The warning came after European Commission President Jean-Claude Juncker threatened Greece with expulsion from both the euro and the European Union on Monday. In an emotional speech, Juncker said that a 'no' vote in the referendum would mean that Greece did not intend to remain part of the trade bloc.
Before that, late on Monday, Prime Minister Alexis Tsipras told Greeks in a televised speech that his government would not survive a 'yes' vote in the bailout referendum to be held on Sunday.
"If the (Greek) people vote 'yes,' then the referendum outcome will be completely respected but I will not serve it," Tsipras said. "I'm not an all weather prime minister. I will respect the verdict and prepare the ground as outlined by the constitution and the parliament."
As of Tuesday morning, Greece had not yet made the 1.6 billion ($1.8 billion) payment due to the Internatonal Monetary Fund on this date. This puts Greece into formal default, and makes it ineligible for further aid from the IMF.
Nor can Greece expect any further help from the European Member States. European Council President Donald Tusk formally stated on Monday that a late request for a bailout extension made by Tsipras would be unconditionally refused. Tsipras had sent a letter to the heads of the eurozone nations, asking to continue the bailout for another 30 days. Tusk invited Tsipras to accept the final bailout proposal that the European Commisson published on Monday.
Meanwhile confusion has increased in the Greek capital with Greeks running to ATMs to get the 60 maximum withdrawal, as banks remain closed until Monday. Credit and debit cards may only be used for payments within Greece, and web banking transactions are also be limited to payments in Greece.
Speaking to people in the street, Anadolu Agency found anger at what has come to pass, and fear about the future.
The Greek people seem to be divided into two camps: The pro euro camp which will vote 'yes' to the bailout, and the no camp which has simply had enough of the EU.
Efi Dima a businesswoman said: This government had six months to negotiate and hold a referendum in February or March to prove their democratic argument. Calling a referendum after the expiration of the program, with the banks closed, with capital control restrictions, with all the elderly queuing in front of ATM's to get their 60 per day, in the middle of the tourist season and with the market totally collapsing, I am sorry, but this is not an act of democracy, it is an act of high bluff or pure stupidity. I hope the consequences will not be fatal.
Giannis Stavrakis, a shop owner who waited 45 minutes on line in front of an ATM, agreed.
A week ago they said we shouldnt worry about the banks and that they would remain open...look at us now, he complained. Stavrakis said he was worried about his business, which is now facing huge problems as he cant pay for his orders.
I can only get 60 Euros and I have to pay 1000 in order to pay for my orders...how would I do that?
A 67-year-old pensioner who wanted to keep her anonymity, took a different view, blaming the EU. She said that further cuts in the pension would not bring any improvement to the country, They want to totally belittle us...is that what they want to do? She shouted out that she would vote 'no.'
Greeks may soon have trouble buying medicines at the pharmacy. Pharmaceutical companies have expressed concern about making further shipments to the country that they fear will not be paid for.
There may also be reactions from foreign banks and central banks on Tuesday, as the Greek default creates challenges for international banks that hold Greek securities or in which Greek businesses keep funds.
Separately, Standard & Poor's has cut Greece's sovereign credit rating to '-CCC' from 'CCC.' The agency said that the default and the increasing likelihood of a euro exit for Greece raised risks on its debt.
Anadolu Agency
Varoufakis said Greece would seek an injunction in the European Court of Justice to end capital controls and to block any attempt to expel Greece from the euro system.
"The Greek government will make use of all our legal rights," Varoufakis warned.
"We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable," he said.
The warning came after European Commission President Jean-Claude Juncker threatened Greece with expulsion from both the euro and the European Union on Monday. In an emotional speech, Juncker said that a 'no' vote in the referendum would mean that Greece did not intend to remain part of the trade bloc.
Before that, late on Monday, Prime Minister Alexis Tsipras told Greeks in a televised speech that his government would not survive a 'yes' vote in the bailout referendum to be held on Sunday.
"If the (Greek) people vote 'yes,' then the referendum outcome will be completely respected but I will not serve it," Tsipras said. "I'm not an all weather prime minister. I will respect the verdict and prepare the ground as outlined by the constitution and the parliament."
As of Tuesday morning, Greece had not yet made the 1.6 billion ($1.8 billion) payment due to the Internatonal Monetary Fund on this date. This puts Greece into formal default, and makes it ineligible for further aid from the IMF.
Nor can Greece expect any further help from the European Member States. European Council President Donald Tusk formally stated on Monday that a late request for a bailout extension made by Tsipras would be unconditionally refused. Tsipras had sent a letter to the heads of the eurozone nations, asking to continue the bailout for another 30 days. Tusk invited Tsipras to accept the final bailout proposal that the European Commisson published on Monday.
Meanwhile confusion has increased in the Greek capital with Greeks running to ATMs to get the 60 maximum withdrawal, as banks remain closed until Monday. Credit and debit cards may only be used for payments within Greece, and web banking transactions are also be limited to payments in Greece.
Speaking to people in the street, Anadolu Agency found anger at what has come to pass, and fear about the future.
The Greek people seem to be divided into two camps: The pro euro camp which will vote 'yes' to the bailout, and the no camp which has simply had enough of the EU.
Efi Dima a businesswoman said: This government had six months to negotiate and hold a referendum in February or March to prove their democratic argument. Calling a referendum after the expiration of the program, with the banks closed, with capital control restrictions, with all the elderly queuing in front of ATM's to get their 60 per day, in the middle of the tourist season and with the market totally collapsing, I am sorry, but this is not an act of democracy, it is an act of high bluff or pure stupidity. I hope the consequences will not be fatal.
Giannis Stavrakis, a shop owner who waited 45 minutes on line in front of an ATM, agreed.
A week ago they said we shouldnt worry about the banks and that they would remain open...look at us now, he complained. Stavrakis said he was worried about his business, which is now facing huge problems as he cant pay for his orders.
I can only get 60 Euros and I have to pay 1000 in order to pay for my orders...how would I do that?
A 67-year-old pensioner who wanted to keep her anonymity, took a different view, blaming the EU. She said that further cuts in the pension would not bring any improvement to the country, They want to totally belittle us...is that what they want to do? She shouted out that she would vote 'no.'
Greeks may soon have trouble buying medicines at the pharmacy. Pharmaceutical companies have expressed concern about making further shipments to the country that they fear will not be paid for.
There may also be reactions from foreign banks and central banks on Tuesday, as the Greek default creates challenges for international banks that hold Greek securities or in which Greek businesses keep funds.
Separately, Standard & Poor's has cut Greece's sovereign credit rating to '-CCC' from 'CCC.' The agency said that the default and the increasing likelihood of a euro exit for Greece raised risks on its debt.
Anadolu Agency
