Kenny says Greece must take next step and seek third bailout

Taoiseach Enda Kenny said that it is now up to the Greek government to make the next move following Sunday’s referendum to reject the terms of a new bailout.

Mr Kenny, speaking during a visit to Connemara in Co Galway, said: “The second bailout has ended and you are now into a position where the next move is up to the Greek government. If they wish to have a third bailout or a third programme put in place with monies made available then they have got to ask for that and that means that they have got to sit down and restart negotiations again.

“Obviously the European Central Bank is independent in the way it does its business. [ECB president Mario] Draghi will make his decision on that in the near future I would expect. I understand that there will be a conference call and a Euro group meeting of the ministers for finance. And President Tusk has called a meeting of the European leaders tomorrow evening in Brussels so the next move is up to the Greek government.

“I note the resignation of the minister for finance but obviously if monies and assistance are requested and they are needed then the first move has to come from the government.”

Mr Kenny said that the margin of the ‘No’ vote in the Greek referendum was entirely a matter for the people of that country. “But remember there are 18 other democracies in the euro zone as well and obviously people have different views. Democracy is equal in whatever country it comes from but there can be very great differences of how that is actually seen and voted on.”

Minister for Finance Michael Noonan insisted Ireland would continue to negotiate with the Greek government to provide certainty for their economy.

Mr Noonan said: “I hope that following this result the Greek government will continue discussions with fellow member states in an effort to provide certainty for the Greek people and return stability to their economy.

“Ireland will continue to engage in an effort to reach a successful conclusion to the negotiations.” The Minister will attend a meeting of Eurogroup finance ministers tomorrow to discuss the outcome of the referendum.

Also speaking on the future of Greece, Minister for Justice Frances Fitzgerald said: "It's critical that people get back to the table to negotiate. We certainly support the re-profiling of the debt in the same way that Ireland has benefitted, it's important that European solidarity is expressed."

When asked if Greece would stay in the euro, Ms Fitzgerald said "I hope so. I think it's very important that there is solidarity across Europe, but of course the views of other democracies and our citizens have to be taken into account as well.

“Ireland, for example, is owed € 350 million by Greece under the current arrangement, others are as well, so it is about sitting down, it is about negotiating and coming up with solutions that people can accept.”

‘Unchartered waters’

Minister for Foreign Affairs Charlie Flanagan said the situation in Greece is “grave”.

He said this was “unchartered waters” for everyone in the Eurozone.

Mr Flanagan encouraged the new Greek Finance Minister to ensure talks begin immediately.

He said it was time for the Greek Government to come to Europe with the best set of proposals.

Mr Flanagan said: “It beholds the Greek Government to return to Brussels with a revised set of proposals which will form the basis for a negotiated settlement.”

He said the most important thing was that the Greeks come to the negotiating table.

Mr Flanagan said the “ball is firmly in the court of the Greek Government”.

Fianna Fáil leader Micheál Martin urged the Irish Government to play a more positive and constructive role in the process.

He said: “The chaos that we have seen in the last week has not done anything positive for Greece’s prospects or for European stability.

“It is far from clear what the outcome of this referendum means in real terms, but that clarity is needed and needed urgently. Europe is better and stronger when we are united in common purpose and debt sustainability plays a key part in this.

“We would hope also that the Irish government might play a more positive and constructive role in the political process that follows now than it has to date.”

Mr Flanagan later encouraged Irish people travelling to Greece not to cancel their holidays.

Thousands of people are expected to fly there over the coming weeks and the minister said foreign visitors should carry money rather than rely on bank cards.

“Don’t change your holiday plans. Greece is a wonderful country in which to holiday,” he said.

“It is our hope the tens of thousands of especially young people will continue to execute their plans for what will be a most enjoyable holiday.”

Sinn Féin leader Gerry Adams said the decision of the Greek people needed to be respected by all European leaders.

He said the result was a wake-up call for all European Union leaders and demanded a rethink on how the union is run.

Mr Adams said: “This decision of the Greek people should force a rethink on how the EU is run. It is now time to return to the values of solidarity and co-operation that the founders of the European movement claimed underpinned it.

“It is shameful that throughout this crisis the Irish Government aligned itself with the EU elite and against the interests of the people of Greece, of Ireland and of the EU.

“In the wake of the referendum result, Taoiseach Enda Kenny and Finance Minister Michael Noonan must set aside their petty party political concerns and support Greek efforts to negotiate a fair and sustainable solution to their debt crisis.”

The Polish Foreign Minister Grzegorz Schetyna said this was a “huge test for the maturity of Greek democracy”.

He said a solution was needed but there was no alternative and that the Eurogroup needed to be remain consistent.