Greece should stay in the euro – European Commission

European Commission Vice-President Valdis Dombrovskis.(Reuters / Eric Vidal)
Greece should stay within the eurozone, said European Commission Vice-President Valdis Dombrovskis speaking at a news conference, adding that eurozone stability was safe.

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“Greece’s place is in the euro,” Dombrovskis said."The crisis in Greece does not threaten the financial stability of the entire eurozone. We have all the necessary instruments to ensure it, including the stabilization fund of €500 billion,"he added.

However, the gap between Greece and other eurozone countries has widened after the Greek people voted against the creditors’ proposals.The negative answer at the referendum in Greece will weaken the country's negotiating position with creditors, this is the European Commission’s position, he said.

The question at the referendum in Greece was factually inaccurate, since the second financial aid program by the creditors had expired on June, 30, said Dombrovskis.

READ MORE: More than 61% of Greeks say 'No' in crucial bailout referendum – final tally

Eurozone members will hold an emergency summit on Tuesday where they’ll discuss the Greek referendum result. EU President Donald Tusk and the president of the European Commission Jean-Claude Juncker are expected to talk at a European Parliament session in Strasbourg on July 7 at 13:00 GMT.

The European Commission needs to receive a mandate from the Eurogroup in order to continue negotiations on the two-year program of assistance under the European Stability Mechanism that Greece had requested, he said.

"The meeting of the Eurogroup, as well as the eurozone summit is scheduled for July 7. I do not want to prejudge the outcome of the meeting, but I expect that this issue will be defined there,” he said.

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The EU has given Greece more than €184 billion in macro-financial assistance over five years through its stabilization mechanisms, the European Financial Stability Facility (EFSF) and Greek Loan Facility (GLM), said Dombrovskis.The two bailout packages for Greece since 2010 are estimated at €240 billion.

Greece does not have enough funds to finance its internal and external commitments, as its EU partners demand new austerity measures in return for fresh money. More than 61 percent of voters said ‘No’ to the requirements of European lenders in Sunday’s referendum.

The referendum took place as the country faces the threat of bankruptcy, a week after local banks were closed when the ECB refused to increase its €89 billion emergency liquidity assistance (ELA) program.

Dombrovskis refused to comment on the resignation of Greek Finance Minister Yanis Varoufakis.

"The resignation of the Minister of Finance of Greece and the appointment of his successor is an internal affair of Greece," said Dombrovskis.