Greek PM Alexis Tsipras calls referendum on bailout terms

Prime minister returns from Brussels and tells Greece that terms offered by creditors 'clearly violate the European rules'

In a dramatic move that will put Europe on tenterhooks, the Greek prime minister Alexis Tsipras told his fellow citizens last night he would call a referendum on the bailout accord that international creditors have proposed to keep the debt-stricken country afloat.

Following an emergency meeting of his cabinet, Tsipras said his leftist-led government had decided a package of austerity measures proposed by the country's creditors - made in a last-ditch effort to avert default - would be put to popular vote. The referendum will take place on Sunday 5 July.

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