EC President: Referendum Unable to Strengthen Athens' Negotiating Position

European Council President Donald Tusk claims that regardless of its results, the bailout referendum in Greece will not strengthen the position of Athens in negotiations with its creditors.

MOSCOW (Sputnik) — Regardless of its results, the bailout referendum in Greece will not strengthen the position of Athens in negotiations with its creditors, European Council President Donald Tusk said Monday.

On Saturday, Prime Minister Alexis Tsipras announced that a snap referendum on whether to accept a bailout proposal by Greece’s creditors in exchange for unpopular austerity measures would take place on July 5.

Tsipras himself backs a 'No' vote arguing that a rejection of international creditors' proposal by the public would better arm Athens in future possible talks with the lenders.

On #Greece: every government has the right to hold a referendum. However, NO vote will not will not result in stronger negotiating position.

— Donald Tusk (@eucopresident) June 29, 2015

Greece's current bailout program expires on Tuesday. On the same day, the country is due to transfer the next $1.7-billion payment to the International Monetary Fund (IMF).

If Greece defaults, it could be forced to leave the single currency monetary union and possibly the European Union.