BERLIN (AP) - The latest news about the Greek bailout talks (all times local):
BERLIN (AP) — The latest news about the Greek bailout talks (all times local):
The head of a major German economic think-tank says the only way Greece could stay in the eurozone if Greeks reject reform conditions in a popular vote next week would be for creditors to agree to debt relief and Greek banks to be rescued without outside help — largely by customers forfeiting part of their deposits.
Clemens Fuest of the Center for European Economic Research says that "that is not practically workable."
As Greeks withdraw money from cash machines, the banks are under increasing financial strain. So far, the European Central Bank is supporting the Greek banks by allowing them to draw on emergency credit.
Fuest says that, unless Greece puts limits on money withdrawals and transfers, the ECB will face the choice on Monday of accepting the collapse of Greek banks or further expanding the emergency credit.
Fuest says that "only with capital controls from Monday can Greece be given time until July 5 to hold a referendum on the rescue program."
Germany's vice chancellor says that a Greek referendum on the bailout talks could in principle make sense, but notes that it should be clear to voters what they will be deciding on.
Sigmar Gabriel told Deutschlandfunk radio: "We would be well-advised not simply to push this proposal from Mr. Tsipras aside and say that it's a trick. If the questions are clear — if it's really clear that they are voting on a program that has been negotiated, it could make sense."
The agenda of the Greek Parliament showed the referendum would be on a proposal of reforms that creditors offered to Greece on Thursday. Should Greeks reject the proposal, it is unclear what Greece's options would then be.
Gabriel added: "There must be a clear program. And what he (Tsipras) would like — for Europe to send 20 or 30 billion in aid programs to Greece, but without any conditions — Europe cannot accept."
He said that "Europe is offering a great deal" and that "many of the tough measures that were being debated at the beginning are off the table."
He pointed to EU efforts to invest in growth, softening the previous focus on austerity.
The Greek Parliament will open a debate at noon local time on whether or not to approve the government's planned referendum on the creditors' latest proposal for a bailout.
The Parliament has posted Saturday's agenda on its website, saying it will vote on the referendum at about 7 p.m.
It says the July 5 referendum announced by Prime Minister Alexis Tsipras late Friday will be on whether voters approve or reject the bailout proposal submitted by Greece's creditors Thursday.
The proposal, according to Parliament's agenda, is made up of two documents: one called "Reforms for the completion of the Current Program and Beyond" and another called "Preliminary debt sustainability analysis."
Aside for the issue of making these documents accessible to all voters, the Parliament must also deal with a likely contingency of creditors withdrawing those proposals at the Eurogroup meeting later Saturday.