Greece debt talks: Juncker feels 'betrayed'

Talks broke down on Friday (26 June) sparking a weekend of dramatic developments.

Greece called a surprise referendum and Greek banks are closed for a week.

The negotiations were not "a game of liar's poker", Juncker said. "Either all win or all lose".

He said the talks were broken "unilaterally" by the announcement from the Greek Prime Minister Alexis Tsipras that he was calling a referendum for 5 July.

The European Commission president said that he still believed a Greek exit from the euro was not an option and insisted that the creditors' latest proposal meant more social fairness - "no wage cuts, no pension cuts".

Is Grexit nearer?

On Saturday, the European Central Bank (ECB) decided not to extend emergency finance to the Greek banks, after the breakdown of talks on giving heavily indebted Greece the last payment of its international bailout.

Following the ECB announcement, Greece said its banks would remain shut until 6 July. Cash machines are now reopening, but customers can withdraw only limited amounts.e

A critical deadline looms on Tuesday, when Greece is due to pay back €1.6bn to the International Monetary Fund - the same day the bailout expires. There are fears of a default and a possible exit from euro.

The French cabinet met on Monday in an emergency session. President Francois Hollande said afterwards that a deal was still possible if the Greeks wanted it.

"There are a few hours before the negotiation is definitively closed, in particular for the prolongation of the Greek aid programme."

German Chancellor Angela Merkel's spokesman said that she was "ready for further talks" with the Greek Prime Minister Alexis Tsipras "if he actually wants to".

Markets fall

In its decree bringing in the bank restrictions, the Greek government cited the "extremely urgent" need to protect the financial system due to the lack of liquidity.

The main points are:

• Banks closed till 6 July;
• cash withdrawals limited to €60 (£42; $66) a day for this period;
• cash machine withdrawals with foreign bank cards permitted;
• pension payments not part of capital controls, and;
• banking transactions within Greece allowed.
  In reaction to the crisis, the London, Paris, Frankfurt and Milan stock markets fell sharply in early trading on Monday, following similar falls in Asia.

The euro lost 2% of its value against the the US dollar. Government borrowing costs in Italy and Spain, two of the eurozone's weaker economies, have also risen.

The Athens stock exchange is also closed as part of the measures.

Days of turmoil

• Friday evening: Greek prime minister calls referendum on terms of new bailout deal, asks for extension of existing bailout
• Saturday afternoon: Eurozone finance ministers refuse to extend existing bailout beyond Tuesday
• Saturday evening: Greek parliament backs referendum for 5 July
• Sunday afternoon: ECB says it is not increasing emergency assistance to Greece
• Sunday evening: Greek government says banks to be closed for the week and cash withdrawals restricted to €60

Eurozone finance ministers also blamed Greece for breaking off the talks, and the European Commission took the unusual step on Sunday of publishing proposals by European creditors that it said were on the table at the time.

But Greece described creditors' terms as "not viable".

The current ceiling for the ECB's emergency funding - Emergency Liquidity Assistance (ELA) - is €89 billion (£63bn). It is thought that virtually all that money has been disbursed.

Transcript of Jean-Claude Juncker speech - SPEECH/15/5274