ATHENS, greece — Eurozone finance ministers decided Wednesday to break off talks on more aid for Greece until after it holds a weekend referendum, even as the Greek government pressed ahead with plans to let the people decide whether to accept more austerity measures in exchange for a rescue deal.
After a late-night teleconference, the chairman of the eurogroup said the 19 ministers had decided to put any further negotiations on hold.
“Given the political situation, the rejection of the previous proposals, the referendum which will take place on Sunday, and the recommendation by the Greek government to vote ‘No,’ we see no grounds for further talks at this point,” said Dutch Foreign Minister Jeroen Dijsselbloem.
Earlier Wednesday, Prime Minister Alexis Tsipras, who called the popular vote for Sunday, was defiant, saying it would go ahead as planned and again urging citizens to vote “No.” In a televised address to the nation, he said a “No” result would not mean that Greece would have to leave the euro, as many European officials have argued. Rather, Tsipras insisted, it would give the government a stronger negotiating position with creditors.
“There are those who insist on linking the result of the referendum with the country’s future in the euro,” Tsipras said. “They even say I have a so-called secret plan to take the country out of the EU if the vote is ‘No.’ They are lying with the full knowledge of that fact.”
In a letter to creditors sent late Tuesday, Tsipras said his government was prepared to accept their earlier proposals, subject to certain amendments.
Some European countries — including Germany, the largest single contributor to Greece’s bailout — said the proposal wasn’t good enough and that a deal remained impossible in any case before the referendum.
“We will wait for the referendum,” Chancellor Angela Merkel told the German Parliament. “There can be no negotiations on a new aid program before the referendum.”
Greece is in a financial limbo now that its bailout program has expired, cutting it off from vital financing and pushing it one step closer to leaving the euro. It also has become the first developed country to fail to repay an International Monetary Fund debt on time.
