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EU Awaits New Greek Proposals For Talks

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EU leaders await proposals from Greece Prime Minister Alexis Tsipras after the public voted against conditions placed by creditors.

European Council President Donald Tusk has convened a special Euro Summit on July 7 to discuss the situation after the referendum in Greece. Ahead of the Euro summit, German Chancellor Angela Merkel and French President Francois Hollande are set to hold talks in Paris on Monday.

The European Central Bank will discuss later today whether to continue the emergency liquidity assistance to Greece banks. The assistance from the ECB is vital for Greek banks to stay liquid.

On Sunday, 61 percent of Greek voters supported Tsipras' call for rejecting the terms of creditors. Tsipras said his people made a brave choice.

In a surprise move, Greece Finance Minister Yanis Varoufakis said he is resigning despite the Greek people rejecting the proposals.

Merkel's spokesman Steffen Seibert said today the door for talks remain open and it is up to Greek authorities to present new proposals. He also said that the time is not right to start negotiations for a new aid programme.

France Finance Minister Michel Sapin told Europe 1 radio the "No" vote has raised the risk of Grexit but there is nothing automatic. Sapin said the future course will depend on the quality of negotiations.

Spain's Economy Minister Luis de Guindos reportedly said Spain is open to negotiate a third bailout package.

At a news conference, European Commission Vice-President Valdis Dombrovskis said the gap between Greece and other Eurozone countries has widened after the referendum. The commission is ready to continue to work with Greece.

"But to be clear, the Commission cannot negotiate a new programme without a mandate from the Eurogroup," Dombrovskis added.

Eurogroup President Jeroen Dijsselbloem said the rejection of proposals by Greece had made discussions more difficult. Keeping Greece in the currency block "is still their objective and mine," he said.

Earlier, Dijsselbloem said the results of the Greek referendum is very regrettable. For the recovery of the Greek economy, difficult measures and reforms are inevitable. "We will now wait for the initiatives of the Greek authorities," said Dijsselbloem.

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