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| Greece debt crisis: MPs back referendum on bailout | Greece debt crisis: MPs back referendum on bailout |
| (35 minutes later) | |
| The Greek parliament has backed plans for a referendum on international creditors' terms for a new bailout. | |
| The 5 July referendum was called by PM Alexis Tsipras, who opposes further budget cuts. He urged voters to deliver a "resounding 'no'" to the package. | |
| Eurozone partners have criticised to Greece's referendum announcement, and rejected its request to extend the bailout programme beyond 30 June. | |
| Greece faces default if it fails to pay €1.6bn (£1.1bn) to the IMF on that day. | |
| There are fears the country may leave the euro and that its economy may collapse without new bailout funds. | |
| Mr Tsipras's motion on a referendum easily won the backing in the 300-member strong parliament, with at least 179 MPs voting "yes" in the early hours of Sunday. | |
| Speaking just before the vote, Mr Tsipras described the creditors' proposal as "an insulting ultimatum" and said an emphatic "no" vote on 5 July would strengthen Greece's negotiating position. | |
| His government had earlier rejected the creditors' offer of a five-month extension to Greece's bailout programme in exchange for reforms. | His government had earlier rejected the creditors' offer of a five-month extension to Greece's bailout programme in exchange for reforms. |
| On Saturday, eurozone finance ministers rejected the Greek proposal for the bailout extension beyond Tuesday's deadline. A Eurogroup statement said Greece had broken off negotiations over a new bailout deal "unilaterally". | |
| Analysis: Chris Morris, BBC News, Brussels | |
| It's never over till it's over. But it feels like the end is perilously close. The breakdown in talks between Greece and its creditors has to be seen as a failure. | |
| It wasn't supposed to happen like this. It is also a massive gamble on all sides, and a possible turning point in the history of the eurozone. There will still be those working feverishly behind the scenes for compromise, but in effect neither side has blinked yet. | |
| When the Greek government thought it had made substantial concessions at the beginning of the week, the creditors said it simply wasn't enough. And while no-one can say for certain that Greece will leave the eurozone, this is already uncharted territory. | |
| Much will depend on the outcome of the referendum called by PM Alexis Tsipras, if it takes place on schedule. And much will also depend on the European Central Bank - and whether it believes it can still allow funds to flow, to prevent banks in Greece from collapsing. | |
| ECB faces huge decision | |
| Can Greece stay in the euro? | |
| Crisis talks: As they happened | |
| Eurogroup head Jeroen Dijsselbloem said it would now be up to the European Central Bank (ECB) to decide whether to continue providing emergency liquidity funding to the Greek banking system. | Eurogroup head Jeroen Dijsselbloem said it would now be up to the European Central Bank (ECB) to decide whether to continue providing emergency liquidity funding to the Greek banking system. |
| IMF head Christine Lagarde told the BBC that because the European part of Greece's bailout programme would have expired by 5 July, any referendum would relate to "proposals and arrangements which are no longer valid". | |
| But she said that if there was a "resounding 'yes'" to staying in the eurozone, then the response would be "a resounding 'let us try'". | |
| Meanwhile, queues have formed in Greece outside banks in the past few days amid concerns that the central bank might start restricting withdrawals. | |
| Greece timeline: Key dates ahead |