Germany ‘sees no basis for new negotiations with Greece’

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German Chancellor, Angela Merkel

Stock markets have fallen over fears Greece could leave the euro.

Markets in Asia and Europe dipped after yesterday’s No vote in a referendum to accept or reject a package of austerity measures. In London, the FTSE 100 initially fell around 73 points.

Voters rejected bailout proposals yesterday, in a move which their Prime Minister Alexis Tsipras insists gives him the authority to negotiate a better deal for his country.

Despite the public backing for his stance against creditors, his Finance Minister Yanis Varoufakis resigned this morning, saying he hoped it would make negotiations on a new agreement easier.

Meanwhile the French and German leaders will meet in Paris today to discuss the fallout from the Greek referendum.

The Eurogroup of eurozone finance ministers said it expected new proposals from Greece before it meets tomorrow.

Angela Merkel’s spokesman said Germany sees no basis at present for entering negotiations on a new bailout programme for Greece, but that the door remains open.

Steffen Seibert said Germany respects the “clear No vote” by Greeks against austerity measures demanded by creditors and that “the door for talks always remains open”.

However, he said the conditions are “not there at present to enter negotiations on a new programme”.

He said the No vote is a vote against the principle – still supported by Germany – that solidarity requires countries to take responsibility.

Mr Seibert said Europe will explore what possibilities there are to help Greek citizens and “a lot will depend on what proposals the Greek government now puts on the table”.

Spanish economy minister Luis de Guindos said his government is ready to talk about a third Greek bailout.

Mr De Guindos, speaking after the government’s economic team met to discuss Greece’s referendum result, said everyone wants Greece to “stay in the euro”.

However, he said “the rules for the euro remain the same as they were two days ago…I don’t contemplate in any way Greece leaving the euro.”

The minister conceded the situation now was probably the most complex since the euro launched in 1999 but that the currency’s irreversibility would be reaffirmed at the meeting of eurozone finance ministers tomorrow.

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