Greek 'no' vote places EU leaders on the back foot

London

A RESOUNDING Greek vote against creditor austerity demands has pushed European Union (EU) leaders on the back foot.

German Chancellor Angela Merkel and French President Francois Hollande met on Monday ahead of a meeting of EU leaders on Tuesday after 61.3 per cent of Greek voters backed their Syriza premier Alexis Tsipras. Mr Tsipras stressed that the "no" vote was against creditor demands for austerity, in particular pension cuts and higher sales taxation. It was not a vote to leave the euro. In statements, several EU leaders asked Mr Tsipras to put forward proposals.

Market participants were cheered by the resignation of Yanis Varoufakis, Greece's outspoken finance minister who had alienated German and other EU counterparts. His departure is regarded as a clear gesture by Mr Tsipras that he wants a deal …