In a phone call Sunday, President Obama and German Chancellor Angela Merkel agreed to “make every effort” to stave off a pending financial collapse in Greece.
Greek banks will be closed on Monday as capital controls are imposed, according to news reports. Large withdrawals by panicked Greeks left ATMs unable to dispense cash Saturday after talks intended to keep Athens from defaulting on a $1.7 billion payment to the International Monetary Fund due Tuesday broke down.
“The two leaders agreed that it was critically important to make every effort to return to a path that will allow Greece to resume reforms and growth within the Eurozone,” the White House said in a readout of the call. “The leaders affirmed that their respective economic teams are carefully monitoring the situation and will remain in close touch.”
European Union negotiators broke off bailout talks over the weekend after leftist Greek Prime Minister Alexis Tsipras called a July 5 referendum on the latest offer and urged voters to reject the “humiliation.” French Prime Minister Manuel Valls warned that there was a real risk of Greece leaving the eurozone if voters reject the offer.
“In these critical hours, we must remember that the only thing to fear is fear itself,” Tsipras tweeted late Sunday. “The dignity of the Greek people in the face of blackmail and injustice will send a message of hope and pride to all of Europe.”
In these critical hours, we must remember that the only thing to fear is fear itself. #Greece
— Alexis Tsipras (@tsipras_eu) June 28, 2015
The dignity of the Greek people in the face of blackmail and injustice will send a message of hope and pride to all of Europe. #Greece
— Alexis Tsipras (@tsipras_eu) June 28, 2015
Greek Finance Minister Yanis Varoufakis told German media that Merkel holds the key to resolving the crisis.
“The EU leaders must act. And among them she, as the representative of the most important country, holds the key in her hand. I hope she uses it,” he told the newspaper Bild.
