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Tsipras promises Merkel Greek 'proposals' at eurozone summit,Tsakalotos to be new finance minister

Former finance minister campaign hard for terms to be rejected

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(ANSA) - Rome, July 6 - Greek Premier Alexis Tsipras and German Chancellor Angela Merkel agreed in a phone call Monday that Tsipras will present some proposals to a eurozone summit Tuesday, Greek government sources said according to Bloomberg.

Euclid Tsakalotos, head of the Greece debt negotiating team, will be named new finance minister in place of Yanis Varoufakis who quit Monday, Greece's Skai TV said.

Merkel's spokesman had said Monday that Berlin saw little scope for fresh negotiations with Greece after Sunday's No vote to creditors proposals. "The door remains open but, given the referendum result, at the moment the prerequisites don't exit for new negotiations on other aid programmes," spokesman Steffen Seibert said.

Yanis Varoufakis announced he was stepping down as Greek finance minister on Monday after the nation voted to reject the conditions of the country's international creditors. Varoufakis had campaigned hard for a no vote in Sunday's referendum. The resignation may be aimed at facilitating fresh negotiations to avert a Greek default and an exit from the eurozone.

But  Seibert said that: "the question is not about the people, but about the positions".

The Milan stock exchange's FTSE Mib index lost 2.9% in early trading on Monday as European money markets were hit by the Greek No vote. The London stock market opened 1.8% down, while Frankfurt's Dax lost 1.87% and Paris's Cac40 index shed 2.06%.
  

German Finance Minister Wolfgang Schaeuble's spokesman, meanwhile, said that debt relief for Athens was not on the agenda. "Cutting the debt is not an issue for us," spokesman Martin Jaeger said.

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