Returning home to Athens last night Greek PM went on television around midnight to declare a referendum on the current proposals from creditors
Greek parliament is convening shortly to approve the call which has been set for July 5
Tsipras said
"Our responsibility is for the future of our country. This responsibility obliges us to respond to the ultimatum through the sovereign will of the Greek people"
adding that he would respect the outcome of the referendum but said the lenders demands
"clearly violate European social rules and fundamental rights, would asphyxiate Greece's flailing economy and aimed at the "humiliation of the entire Greek people".
Greek govt ministers are confident of a No vote but this surprise move throws the whole process now into further turmoil with default and capital controls very much in play
The meeting of EU fin mins is going ahead as planned and will be underway shortly with German deputy chancellor Sigmar Gabriel on radio a short while ago urging Greece to at least agree a deal for the nation to vote on
"We'd be well advised not to dismiss this suggestion from Herr Tsipras out of hand and say 'that's just a trick'," "But rather if the questions are clearly framed... then that could make sense."
Either way the Greek PM has now raised the stakes in this drawn-out game of bluff and we wait on the EU response. There's a lot more to run on this before markets re-open tomorrow
Reuters has more here and the BBC here
