Merkel open for Greece talks after referendum

BERLIN 

German Chancellor Angela Merkel on Monday criticized Greek Prime Minister Alexis Tsipras for breaking off talks and calling for a referendum on bailout proposals.

However, she said negotiations with Athens could resume after the July 5 referendum.

“If Greek government asks for new negotiations after the referendum, for example, of course we will not refuse such talks,” the chancellor said after an emergency meeting with ministers and party leaders to discuss the crisis.

Tsipras left the Eurogroup negotiations on Saturday and denounced the bailout proposals as "blackmail”.

In a letter to all the heads of the Eurozone nations, leaked to the Financial Times on Monday, Tsipras called for a one-month extension of the program and proposed resuming talks on July 6.

Merkel criticized Tsipras on Monday for not being willing to compromise during negotiations with Greece’s creditors and argued that the creditors had offered an “extraordinarily generous program” for Greece.

“It is a legitimate right for a Greek government for calling a referendum,” she said. “There is no doubt on that and we will respect the outcome. But it is also legitimate for the other 18 members of the Eurozone to develop a position on that.”

Merkel expressed confidence in the euro amid worries over the potential fallout of Greek bankruptcy.

“Today Europe can manage a crisis situation in a stronger way compared to five years ago,” she said, referring to the crisis resolution mechanism created in 2010.

Greece’s bailout ends on Tuesday and without the bailout the country is expected to default on its 1.6 billion euro payment due to the International Monetary Fund.

Since 2010, the EU and the IMF have allocated around 240 billion euros in bailout loans to Greece to help the government pay its creditors.