German
Chancellor Angela Merkel's deputy said Athens had wrecked any hope of
compromise with its euro zone partners by overwhelmingly rejecting
further austerity.
Merkel and
French President Francois Hollande conferred by telephone and will meet
in Paris on Monday afternoon to seek a joint response. Responding to
their call, European Council President Donald Tusk announced that euro
zone leaders would meet in Brussels on Tuesday evening (1600 GMT).
German
Vice-Chancellor Sigmar Gabriel, leader of Merkel's centre-left Social
Democratic junior coalition partner, said it was hard to conceive of
fresh negotiations on lending more billions to Athens after Greeks voted
against more austerity.
Leftist Prime Minister Alexis Tsipras had
"torn down the last bridges on which Greece and Europe could have moved
towards a compromise," Gabriel told the Tagesspiegel daily.
His
comments reflected a mounting public demand in the most powerful EU
country, which is also Greece's biggest creditor, to eject Athens from
the 19-nation currency area, of which membership was intended to be
irreversible.
It was not clear whether Merkel, who has repeatedly
said she wants to keep Greece in the euro zone, would shift to a
similarly hard line.
But
senior lawmakers in her conservative bloc also spoke firmly: "Now one
has to ask the question whether Greece would not be better off outside
the euro zone," Hans Michelbach, a member of the Bavarian Christian
Social Union, told Reuters. "Unfortunately, Greece has chosen a path of
isolation."
The vote
sharpened differences between Greece's few remaining sympathizers in the
euro zone - mostly in Italy and France - and hardline countries led by
Germany that are fed up with pouring loans into Greece.
Italy's foreign minister, Paolo Gentiloni, said the euro zone should resume efforts to reach a deal with Athens.
"Now
it is right to start trying for an agreement again," he tweeted. "But
there is no escape from the Greek labyrinth with a weak Europe that
isn't growing."
SILENCE FROM BRUSSELS
The
euro fell sharply in early Asia-Pacific trading on Monday, losing about
1.4 percent against the U.S. dollar, as analysts for Citi, Barclays and
other banks said a Greek exit was now their "base case" or most likely
outcome.
There was a
thunderous silence from top EU policymakers in Brussels and Frankfurt
who conferred by telephone but avoided public appearances to comment on
an outcome that was a stunning setback for EU governments but delighted
Eurosceptic populists.
The European Commission said in a brief statement that it "takes note of and respects" the referendum result.
Jeroen
Dijsselbloem, chairman of the Eurogroup of finance ministers of the
currency bloc, said in a letter to his Dutch Labour Party members before
the vote: "Although the government in Athens would like people to think
otherwise, it is about the question of whether Greece stays in the euro
zone or not."
European Parliament President Martin Schulz said the EU should start preparing a humanitarian aid program for Greece.
The
60-40 margin of defeat for the terms of a cash-for-reform deal, which
the leftist Greek government rejected a week ago, shocked EU officials
who had been heartened by opinion polls showing the 'Yes' camp gaining
ground as bank closures and the rationing of cash withdrawals began to
bite.
It was a personal blow
for European Commission President Jean-Claude Juncker, one of the
architects of the euro, who worked for months to try to broker a debt
deal with Tsipras despite misgivings in Berlin.
Deputy
finance ministers and senior officials of the Eurogroup Working Group
will hold a conference call on Monday to take stock of the situation,
another euro zone official said.
Any future negotiation would run up against the hardening of opinion in Germany.
The
head of Germany's savings bank association said Greece had broken with
the rules of the euro zone and should leave the currency bloc. The head
of the German exporters' body said he could not see how Greece could
stay in the euro zone now.
Hardline
German Finance Minister Wolfgang Schaeuble, denounced in 'No' campaign
posters as a blood-sucker, has leaned towards making an example of
Greece and pushing it towards the exit, sources familiar with his
thinking say.
In a weekend newspaper interview, Schaeuble said Athens might consider leaving the currency area temporarily.
Eurosceptics
around the EU were jubilant at the rejection of what French far right
National Front leader Marine Le Pen called "the European Union
oligarchy".
"It is 'No' vote
of freedom, of rebellion against European 'diktats' of those who want to
impose the single currency at any price, through the most inhuman and
counter-productive austerity," she said in a statement.
In Britain, anti-EU UK Independence Party leader Nigel Farage commended Greek voters for "calling the EU's bluff".
"EU
project is now dying. It’s fantastic to see the courage of the Greek
people in the face of political and economic bullying from Brussels," he
said.
Eurosceptics in the
Netherlands and Italy joined the chorus of glee at the EU's
discomfiture. In Spain, leader of the new far-left Podemos party, Pablo
Iglesias, who is close to Tsipras, tweeted: "Today in Greece, democracy
has won."
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