Leaders begin patching together new deal after Greek bailout is rejected

A frantic round of talks and phone calls is under way as Europe tries to patch together a deal after Greeks rejected a bailout deal in a referendum. Prime minister Alexis Tsipras phoned Russian leader Vladimir Putin, who “expressed support for the Greek people in overcoming the difficulties facing the country”. Mr Tsipras also spoke to German chancellor Angela Merkel and agreed that Athens will present proposals to the eurozone summit tomorrow. The talks followed the resignation of Greek finance minister Yanis Varoufakis, whose forceful denunciations of creditors alienated many of his euro zone colleagues. He said: “I shall wear the creditors’ loathing with pride.”

I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum. And I shall wear the creditors’ loathing with pride.

Yanis Varoufakis who resigned from his position as Finance Minister on Monday.

Meanwhile, after opening sharply lower, European stock markets recovered some ground following Sunday’s referendum result. Oil prices fell by three per cent. The eurozone’s top official says he still wants Greece to stay in the single European currency. Jeroen Dijsselbloem, who is also the Dutch finance minister, said: “That is their goal, and still mine. But we will have to see if it happens.” Greece’s economy minister Giorgos Stathakis says the European Central Bank should offer another $3.3 billion to the country’s banks alive. He added: “We want to stay in the euro. We want a better deal. A more balanced deal.”

Europe Greece