The Latest: Greece says gap with creditors on deal is small
By The Associated Press, Associated Press
Jul 3, 2015 7:04 AM CDT
Posters reading "We vote en masse, no the agreement'' are seen under Bank of Greece logo in Athens, Friday, July 3, 2015. The brief but intense campaign in Greece's critical bailout referendum ends Friday, with simultaneous rallies in Athens supporting "yes" and "no" answers to a murky question in what...   (Associated Press)

ATHENS, Greece (AP) — The latest news on Greece's financial woes and upcoming referendum (all times local):

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3:00 p.m.

Greece' finance minister says an agreement with the country's creditors "is more or less done" as European officials have put forward "very decent proposals" to the Greek government his week.

Yanis Varoufakis has told Ireland's RTE radio Friday that this "has not been a dead week in terms of negotiations" despite European officials stating publicly that there would be no further talks until after Sunday's referendum.

He says Greece and its creditors "have come very, very close" on fiscal policy and reforms and that the only issue left is debt relief, which a "no" win in the referendum would lock into a deal.

Varoufakis says the ruling Syriza party "would emerge much stronger and united" if the "yes" vote prevails, playing down suggestions that the government would resign.

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2:40 p.m.

Luxembourg Prime Minister Xavier Bettel says he would have preferred that Greece take more time to organize Sunday's referendum and that the question on the ballot paper be far clearer.

Luxembourg has just taken over the rotating presidency of the European Union for the next six months and Bettel's government will have some responsibility for chaperoning through any Greek debt talks.

Bettel says that "the amount of time there has been to organize the referendum is not ideal. A referendum is something that requires an exchange."

He says that "a referendum is something where people have to know what they're voting on. People have to be able to understand the arguments in favor of a 'yes' or a 'no.'"

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2:10 p.m.

European Commission President Jean-Claude Juncker says a "no" vote in Sunday's referendum would weaken Greece's hand in its debt negotiations with international creditors.

Greeks will vote on whether to accept a proposal that creditors had made of specific reforms in exchange for loans. European Union institutions are framing it as a vote for or against the euro.

Juncker says Friday that "the Greek negotiating position would be dramatically weakened by a 'no' vote."

He adds that "even in the case of a 'yes' vote, we will have to face difficult negotiations."

Without sorely-need bailout funds, Greece could fall out of the 19-nation single currency club. However no legal mechanism currently exists for a country to leave the group or be kicked out by its partners.

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1:15 p.m.

The Council of State, Greece's highest administrative court, is hearing a case brought by two private citizens who are seeking to have Sunday's referendum ruled unconstitutional and cancelled.

A separate group has filed a counter-motion supporting the referendum's legality.

Spyridon Nicolaou is one of the two who are trying to have Sunday's popular vote called off.

He tells The Associated Press: "The referendum is invalid because it expressly violates the constitution, which stipulates that a referendum cannot take place on economic matters. But it's also invalid because it doesn't incorporate the text of the documents on which the Greek people are called on to decide. Would anyone from Evros (in Greece's far northeast) know the specific documents?"

Dimitris Belantis is one of those seeking to ensure the vote goes ahead.

He says the referendum doesn't violate the constitution, noting that votes can be held on "crucial national matters" which could include economic ones.

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11:05 a.m.

Greece's economic partners in the 19-country eurozone appear to be withstanding the escalation of the Greek debt crisis, with business activity rising to a four-year high in the second-quarter of the year, according to financial information company Markit.

Its purchasing managers' index — a broad gauge of business activity — rose to 54.4 in June from 53.6 the previous month. June's figure took the average index reading for the second quarter as a whole to a four-year high. Anything above 50 indicates an expansion in activity.

Chris Williamson, Markit's chief economist, says the turmoil in Greece appears to have had "little discernible impact on the real economy."

Williamson says the combination of the stimulus program from the European Central Bank stimulus and low inflation appears to be boosting consumer and business spending, helping to offset 'Grexit' anxiety.

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10:40 a.m.

Though the poll by ALCO for To Ethnos newspaper found Greeks evenly divided on the question that's actually being put forward in Sunday's referendum, it found a clear majority in favor of the country staying in the euro.

According to the poll, an overwhelming majority of 74 percent said they believe it is better for Greece to remain in the euro, compared to 15 percent who prefer a national currency. A further 11 percent said they did not know or would not answer.

On the actual question about recent creditor proposals, the poll found 41.5 percent supporting "yes" and 40.2 percent "no," with 10.9 percent undecided. The rest said they would abstain or leave their ballots blank.

ALCO interviewed 1,000 people nationwide on June 30-July 1 and has a margin of error of 3.1 percent.

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9:50 a.m.

An opinion poll shows Greeks almost evenly split over Sunday's referendum on recent creditor proposals, with 41.5 percent saying they will vote "yes" and 40.2 percent "no," with 10.9 percent undecided. The rest said they would abstain or leave their ballots blank. The difference between the "yes" and "no" votes is well within the margin of error.

Prime Minister Alexis Tsipras called the referendum last weekend, asking Greeks to decide whether they should accept creditor reform proposals in return for bailout funds. He is advocating a "no" vote.

The "yes" campaign says the referendum is a vote on Greece's future in the euro, which the government rejects.

The poll, conducted by ALCO for To Ethnos newspaper, interviewed 1,000 people nationwide on June 30-July 1 and has a margin of error of 3.1 percent.

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8:40 a.m.

Germans are divided on whether Greece should stay in the eurozone.

An opinion poll conducted for public broadcaster ARD found that 45 percent of Germans say Greece should keep the common currency. An equal number say Greece should leave the eurozone.

Sixty-nine percent of respondents say they are concerned about the impact that a possible bankruptcy of Greece might have on the country's population. Some 31 percent say they are worried about the cohesion of the European Union, while 24 percent are concerned about the consequences that such a possibility might have for the German economy.

The telephone poll of 1,001 adults, published Friday, was conducted from June 29-30. It had a margin of error of up to 3.1 percent.

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