EU says NO vote widens gap between Greece and Europe

BRUSSELS, July 6 (KUNA) -- The European Commission Monday stated that the NO vote against austerity measures in Sunday's referendum in Greece has leashed an uncertain future for the country but also stressed that the place of Greece remains in Europe.
"The NO result unfortunately widens the gap between Greece and other European countries. There is no easy way out of the crisis," Valdis Dombrovskis, Vice-President of the European Commission in charge of the Euro told a news conference.
He said the Greek people now face an "uncertain future" and called on the Greek government to implement reforms necessary in order to restore financial stability.
He said the EU's executive body is ready to continue its work with Greece but in order to negotiate now the European Commission needs a mandate from the Eurogroup".
Dombrovskis stated that "The stability of the euro area is not in question," and added that "We have everything we need to manage the situation" and avoid a spread of the Greek example to other EU countries like Portugal or Italy.
Analysts here consider the NO vote in the Greek referendum a big blow to the prestige of European Commission President Jean-Claude Juncker who had urged the Greeks to vote YES and even warned that a NO vote would mean NO to the eurozone and to the EU.
And now in what is seen as a complete U-turn, the European Commission is saying that the place of Greece is in the EU.
"The place of Greece is and remains in Europe. All sides need to act responsibly," said Dombrovskis.
61.31 percent of Greek voters in Sunday's referendum rejected demands by the European Commission, the European Central Bank and the International Monetary Fund for further austerity measure in return for more bailout funds.
The finance ministers of the 19-member Eurogroup are to meet in Brussels on Tuesday to assess the situation in Greece followed by a meeting of the Eurozone leaders. (end) nk.mt