Greek debt crisis: referendum to go ahead as court rejects appeal – live updates

Nick Fletcher (until 2.15) and Julia Kollewe

from on 2015-07-03 18:33 (#D628)

Latest polls show country split down the middle

7.32pm BST

The 'No' rally has turned into a music festival, punctuated by cries of 'Ochi'. Everyone is singing along now.

7.22pm BST

More from Jon Henley in Athens:

Most people stressed they were not voting against the EU, or for a Grexit: "Just against this EU, said Malvina, 27, an engineering student. "We want the right Europe. One where all countries are equal, and treated with respect. I hope a No vote will give Tsipras a stronger position in the negotiations - that's all."

But if Greece did end up quitting, said Christos Mellios, who owns a small plastics factory, "maybe it wouldn't be such a bad thing. It would be good for all of Europe to change. I don't think anyone actually likes this Europe, what Europe has become."

7.20pm BST

There is some union support in Germany for the Greek anti-austerity camp:

@JuliaKollewe German labor union for educators&academics in Hessen (Frankfurt's state) issue strong stmt 4 Greece NO https://t.co/4Cm1j9AKg6

7.17pm BST

Tsipras is making his way through the crowd at the 'No' rally.

7.14pm BST

The Greek prime minister Alexis Tsipras has just emerged from his office - smiling in white shirt and slacks - and is about to walk to Syntagma (a ten-minute stroll) to address the crowd, Helena Smith reports.

7.10pm BST

Police are estimating both crowds at around 20,000 each, reports John Hooper from Athens.

7.07pm BST

The comments come from an interview with Politico. You can read the interview in full here. The European Council president sought to lower the temperature on the Greek crisis, calling on Athens and its creditors to stop the mutual "blame game," work to "rebuild trust" and quickly return to the negotiating table after Sunday's referendum.

The main aim for us is to keep the eurozone united.

if the Greeks vote Yes, I think it's a chance to open a new chapter in negotiations, perhaps more promising than before."

7.01pm BST

More from Donald Tusk, courtesy of Reuters. Striking a conciliatory note, the European Council president said if Greeks vote 'No' to the bailout package there will be less room for negotiations but the aim remains to keep the eurozone united.

He added:

Maybe we will have to get used to living with a country as a member of the eurozone in bankruptcy.

6.58pm BST

Jon Henley has spoken to protesters at the 'No' rally in Athens.

"I'm here to shout No at the top of my voice," said Panos Stathopoulos, a recently retired dentist. "No to austerity, no to this European Union that seems to have no sentiment, nothing."

Sporting a red-and-white OXI sticker, Stathopoulos said after five years of austerity: "They know the situation very well, and still they keep trying to impose these measures on the weakest of us - I'm sorry for the founding fathers of the EU, I don't think they ever envisaged a Europe like this."

6.57pm BST

News flash on Reuters: Donald Tusk, president of the European Council, says the Greek referendum is NOT a vote on whether the country should stay in the euro.

6.45pm BST

Meanwhile, crowds supporting the 'No' campaign are also swelling in Syntagama square, reports Helena Smith.

SKAI TV is showing demonstrators packed into the square and spilling out into surrounding streets. The cries of "Oxi" [No in Greek] have wafted from loud speakers all the way into Plaka, Athens' old town, from where I write these lines.

Anticipation is mounting ahead of prime minister Alexis Tsipras addressing the crowd at 9pm. Many are holding placards denouncing the "barbaric austerity" imposed on Greece at the behest of international creditors at the EU, ECB and IMF for the past five years. Some of the country's most popular singers, musicians, composers and actors are in attendance and will host a concert after the rally in what the leftist-led government has defiantly called a 'festival of the people.'

6.33pm BST

Big crowds are waiting for Tsipras to speak, around 9pm local time (7pm London time). Live music first from various bands. You can watch the 'No' rally live here.

Live-streaming of the pro-NO demo at #syntagma sq. PM Tsipras to speak there around 21.00 (EEST) http://t.co/qk4UeWFmkr #Greferendum

6.29pm BST

Huge crowd in #Athens at Olympic stadium for the Yes campaign #Grexit pic.twitter.com/senBEOX5cV

6.27pm BST

Here's more on the 'Yes' rally, from Helena Smith in Athens. Aerial views of the two huge rallies currently taking place in Athens are being projected from helicopters hired by local TV stations.

Panoramic images relayed by Skai TV are showing a HUGE crowd of Yes voters gathered around Athens' marble Kalimarmaro stadium. Many are holding Greek flags and placards proclaiming "yes to Greece, yes to the euro." Some are also screaming "resign" "resign" at the leftist-led government.

The "yes" [NAI in Greek] campaign, which has won wide support from leading politicians in recent days (and is backed by nearly all of Greece's big, business-owned media channels) argues that the country should be kept in the euro at any cost.

6.24pm BST

More rallies abroad... in Berlin

Viele leute fuers #oxi - many people in berlin #greecebailout pic.twitter.com/lDGQxuEaf8

6.23pm BST

Meet Kos, the Greek island Syrians risk all to reach, only to find money transfer is down - "Even in Syria it works" http://t.co/DjBJx8xBN0

6.20pm BST

While media oligarchs refuse to show any #OXI demo, public @ErtSocial broadcasts live the #YES rally #Grefenderum pic.twitter.com/NzbenbRXDE

6.19pm BST

And, finally, a pic from the 'Yes' rally in Athens...

YES rally in Athens pic.twitter.com/CuPoS30HDn

An honest question: are there any pro-yes rallies abroad? #Greferendum #YesEurope

6.07pm BST

Interesting age breakdown.

Age factor! "Yes" only holds the majority in people aged 55 and above. #GrRef pic.twitter.com/53qm5tcqnl

Crowd swelling at 'No' rally #Greece pic.twitter.com/UvvjkoiLiJ

A journo supporter of NO compiles list of prominent figures voting YES, asking people "not to forget these names": pic.twitter.com/hpokk7LryC

6.06pm BST

Other rallies in Cologne and Frankfurt in Germany and Glasgow express sympathy with anti-austerity protesters in Greece.

"OXI means sovereignty, OXI means dignity, OXI means hope" pic.twitter.com/bbju2OMxN4

#Cologne - #Glasgow - #Frankfurt - People of #Europe stand with #Greece #OXI #Greferendum #StopAusterity pic.twitter.com/s9pzQp5ch5

6.01pm BST

Meanwhile, US senators have written to IMF chief Christine Lagarde warning of the consequences for the fund if there is no satisfactory solution for Greece.

Letter from US Senators to @Lagarde warning consequences for IMF if unsatisfactory resolution in Greece: pic.twitter.com/DdbyP8Y2MC via @fcoin

5.53pm BST

Back to the protests...

Lots of chanting, big gap between helmeted chanting group and police pic.twitter.com/zEgh1Wtp70

5.53pm BST

Potential costs of Greek default, calculated by RBS using official figures:

Potential costs of Greek default in a #Grexit scenario (abn) - h/t @macrocredit pic.twitter.com/GCEHBj5sWW

5.50pm BST

This placard tells Germany's finance minister to "go to hell".

Waiting for Alexis #NO #OXI #Greece #Greferendum #Grexit @BILD pic.twitter.com/pZfXCZpoJ1

5.49pm BST

Looks like the protesters involved in scuffles with police are anarchists. Other reports suggest rally is peaceful.

Peaceful crowd gather for NO vote rally - 200 metres away anarchists face off with police 6 tear gas canisters down pic.twitter.com/2mOybYfZlv

Live from #Syntagma pro 'NO' demo http://t.co/Ora6woIcTH #Greferendum #Greece pic.twitter.com/TopkNZPFgd

#IIITM #IIITM #Greferendum #Greece pic.twitter.com/DusutanPS4

5.45pm BST

Greek police threw stun grenades as they clashed with protesters at the 'No' rally, Reuters reports. The scuffles involved a few dozen people, many dressed in black and wearing helmets, but it appears things have calmed down.

5.41pm BST

The 'No' rally in Syntagma Square in Athens has got under way.

At the 'No' rally, Syntagma. Fair question ... #Greece pic.twitter.com/1UzEr9Lo9D

5.30pm BST

Over in Athens, bankers contacted by the Guardian are expressing grave doubts that lenders will be fully functioning next week. Our correspondent Helena Smith reports

There is almost no ATM in central Athens, as I write, that does not have a huddle of people, cards to the ready, in front of it. This is the beginning of what was meant to be another record year of tourist arrivals and many of those now lining up around cash dispensers are holidaymakers (or journalists as the very heart of the Greek capital has also been taken over by a media circus).

And therein lies the problem: by Monday ATMs will have run out of the very cash Greece so badly needs precisely because demands far outstrips supply and stocks are running out fast. "I have very grave doubts as to whether banks will open on Tuesday and even if they do there will be no cash transactions," one banker confided. "I have seen directors at the Bank of Greece in a state of panic because our liquidity buffer is being eaten up and without the [bailout] programme there's no ELA [emergency liquidity assistance]. We are in a real mess."

5.27pm BST

Greece's top administrative court has rejected an appeal by two Greek citizens against Sunday's referendum on the country's bailout package, as just reported. A bit more detail, courtesy of Reuters:

"Rejected," said the presiding judge in Greece's Council of State court Nikolaos Sakellariou. "The referendum will be held."

5.22pm BST

The news has boosted the euro, which has risen to $1.107 within minutes, from $1.1094.

5.10pm BST

European stock markets have closed, ending the day slightly lower.

FTSE 100 index in London down 44.69 points, or 0.67%, at 6585.78

5.06pm BST

Greece's top administrative court has rejected the appeal to suspend Sunday's referendum, Reuters reports, citing court officials.

4.58pm BST

Another opinion poll, from the Proto Thema website, shows the 'Yes' camp at 41.7% while the 'No' camp is at 41.1% and 10.7% are undecided. The poll was conducted by Alco on behalf of the Proto Thema newspaper.

4.56pm BST

We are still waiting for a decision from Greece's top court on whether Sunday's referendum is legal... and there are two big rallies scheduled for tonight, both in Syntagma Square in Athens. Prime minister Alexis Tsipras is set to speak at the 'No' rally.

And the stage is set ... for tonight's 'No' rally at Syntagma. Crowds (and kebab salesmen) gathering early #Greece pic.twitter.com/sUDh2Lp2JS

4.50pm BST

The a60 daily cash withdrawal limit remains unchanged, Reuters reported, citing officials following a meeting between banking officials and the government's economics team. There had been suggestions that it might be reduced to a20 if banks run out of money.

Yiannis Dragasakis, Greece's deputy prime minister, said ATMs are fully supplied with cash ahead of the weekend.

4.41pm BST

The European Central Bank will hold a detailed discussion on the results of the Greek referendum and whether to extend emergency liquidity assistance to the country's banks on Monday, said Austrian central banker Ewald Nowotny.

He noted that the ECB had extended ELA loans this week but only until Monday when it will reassess its decision, Reuters reported.

4.27pm BST

100 researchers from the European University Institute have come out in support of the 'No' camp in Greece. The institute is an international postgraduate and post-doctoral teaching and research institute set up by European Union member states. The researchers say say a 'no' vote is a step towards a new Europe.

We, researchers of the European University Institute, feel the urge and the duty to express our full-hearted solidarity with the Greek people, who, for five years now, have been suffering the dramatic consequences of the austerity policies imposed by the Troika, and how are now struggling for the right to decide upon their own future.

We defend the right of the Greek people to freely express its will, and we support a 'NO' vote in Sunday's referendum in Greece...

4.16pm BST

Let's look at what economists have to say about Greece and the odds of an exit from the eurozone.

Oxford Economics says:

Whatever the referendum outcome, the ECB is unlikely to significantly increase ELA [emergency liquidity assistance to Greek banks] limits any time soon. Cyprus was able to gradually loosen capital controls because of a decisive and credible commitment to reform. This is not possible in Greece. Our latest scenario analysis suggests an exit probability of around 67%.

A 'Yes' vote: a semi-stable outcome at best.

A 'Yes' vote would allow negotiations to resume on the basis of the late June proposals. However, early elections or an unstable coalition would also follow a 'Yes' vote. And given the time and complexity entailed by a new programme, the third Greek bailout (worth between a60-80bn in our opinion) is unlikely to be approved before late August. As a result, Greece is set to default on its ECB debt repayments (both in July and August). Despite this however, the ECB will continue to provide liquidity to Greek banks as long as the line of communication remains open and at least until there is clarification on the political side. That being said, the ECB is likely to issue a statement requiring a programme to recapitalise Greek banks. The introduction of a parallel currency may be on the cards even with a 'Yes'. Finally, even with a third bailout, the implementation risks remain high - creating a semi-stable outcome.

Clearly, markets are more in wait-and-see mode than in outright panic. Nevertheless, we expect the referendum to set the tone for next week, but whatever the result, we believe the markets are willing to move on to other issues, and we expect credit markets to normalise following the summer period.

3.50pm BST

Both sides are equally to blame in letting the Greek debt crisis get to a point now fraught with immense political and economic risks for the entire eurozone, says Vicky Pryce, chief economic adviser at the Centre for Economic and Business Research. She is also the author of Greekonomics: The Euro Crisis and Why Politicians Don't Get It.

Asked by the Guardian how she would vote on Sunday, Pryce said: "The referendum should never have been held. But I would vote yes."

In truth the creditors' offer to the Greeks differs little in terms of overall austerity to that asked for by the Greeks except on where some of the pain may fall and that hasn't been explained to the Greeks. There has been too much austerity but a no vote would make things worse. It would almost certainly mean banks becoming insolvent, an exit from the euro and a much faster decline in economic activity with hyperinflation following as the drachma that is introduced instantly devalues."

A yes vote would keep banks open and give mandate for a deal to be struck that recognises the new Greek realities and includes, as the IMF now says, restructuring of the debt which every economist knows is unsustainable. This would offer some light at the end of the tunnel. A no vote would make that almost impossible to accomplish and could plunge Greece into years of economic turmoil."

3.47pm BST

Here in the UK, Caroline Lucas, Green party MP for Brighton, has written in the Independent:

The Troika's intransigence on austerity amounts to nothing short of an attempted coup. A democratically elected Government is being backed in a corner by the servants of capital who are desperate to embarrass the Greek electorate for daring to question austerity. For those of us who believe in the EU as a body which should uphold human rights and value solidarity, this bullying is particularly repulsive.

3.39pm BST

More from the head of Greece's banking association: Greek banks have a "liquidity cushion" of a1bn but funds beyond Monday depend on the European Central Bank. Greek banks have been closed since Monday after bailout talks collapsed and a referendum was called.

Louka Katseli told reporters, according to Reuters:

Liquidity is assured until Monday, thereafter it will depend on the ECB decision.

3.31pm BST

A reader in the Netherlands has sent us this. Jeroen Dijsselbloem, the Dutch finance minister and president of the Eurogroup, spoke after the Dutch cabinet meeting today with regard to Greek finance minister Yanis Varoufakis' comments on a deal being in the offing.

According to Dutch newspaper de Volkskrant, Dijsselbloem described this as "completely incorrect" and said: "He [Varoufakis] made that up completely. No new proposals have been sent to Athens," adding: "We are not near a solution."

3.22pm BST

At least half a million Greeks are unable to vote in the referendum - unless they return to the country before Sunday's poll. Under Greek law, people must travel home to where they are registered for voting.

Since the 2007-08 financial crisis, 405,666 Greeks have left the country, according to Eurostat, the European Union's statistical office.

3.18pm BST

The head of Greece's bank association has just said that Greek banks have enough liquidity to see them through Monday morning, according to Reuters. After that, everything depends on the ECB.

3.13pm BST

In his TV address, Tsipras also reiterated that Sunday's referendum is not about Greece's membership of the euro.

The latest opinion poll, from Greek newspaper Avgi, shows that Greeks remain divided. 43% would vote 'no', 42.5% 'yes', and 9% haven't decided yet.

3.07pm BST

Meanwhile, tabloid Bild has polled readers in its own Greece referendum. "Should we support Greece with further taxpayer billions?" was the loaded question it asked readers.

Referring to the Greek referendum on Sunday, Bild said:

We Germans should be asked whether we want to go on paying!

Europe has been paying for bankrupt Greece for the last five years. Athens has received about a325bn in total. Germany's share is about a88bn.

2.56pm BST

Staying with the German press for now" the liberal weekly Die Zeit has made an emotional appeal to Greece: "Stay with us!"

In an editorial available in German, Greek and English, Marc Brost writes:

Dear Greece, you're deciding about your country's future. But it goes far beyond that.

None of us has to make such a decision and we can be happy about that, because if Greeks are now voting, it is not only their own future that will be decided. You, dear Greeks, also will be making a decision about the fate of 500 million people in Europe. You will decide how things will be for all of us.

2.51pm BST

Here are more comments from Wolfgang Schiuble, courtesy of German news agency dpa (translated by The Local news site). The German finance minister said there will be no quick release of bailout funds to Greece after the referendum on whether to accept its creditors' terms on Sunday. Any new bailout would have to be negotiated "on a completely new basis and under toughened economic preconditions."

He added that he would not be able to join other eurozone finance ministers in negotiations for a new bailout for Greece without the agreement of the Bundestag, the German parliament.

2.40pm BST

Tsipras said the IMF's analysis showing Greece's debt is unsustainable justifies his government's decision to reject an aid package that offered no debt relief.

In a televised address to the nation ahead of Sunday's referendum, the Greek prime minister urged Greeks to vote "oxi" (no) on the bailout package.

Yesterday an event of major political importance happened. The IMF published a report on Greece's economy, which is a great vindication for the Greek government as it conforms the obvious - that Greek debt is not sustainable."

I urge you to say #OXI / NO to ultimatums, blackmail & fear. To say NO to being divided. #Greece #Greferendum #dimopsifisma

Tsipras requests 30% debt haircut and grace period of 20 years - as per IMF report

2.16pm BST

Greek prime minister Alexis Tsipras has addressed the nation on Greek television. He said the latest IMF report confirms his government's argument that its debt position is not sustainable. The report said the cash-strapped country needs up to a60bn (42bn) of extra funds over the next three years and large-scale debt relief to give Greece some breathing space and get its economy back on track.

Tsipras also called on Greeks to "calmly go to the polls" on Sunday.

Let us calmly go to the polls, & make our choice by weighing the arguments--not the slogans. #Greece #Greferendum #dimopsifisma #OXI

2.12pm BST

Grand Bretagne in Syntagma Sq suggests guests get assistance leaving the hotel this eve during the Yes demo pic.twitter.com/WdhkDEC5J1

2.04pm BST

Greek business leading are voicing growing concerns over capital controls, adds Helena Smith who reports that speculation is mounting that they could be enforced for much longer than a few weeks. She writes:

In four short days capital controls have had a catastrophic effect. This week alone business leaders estimate that the measures have wrought a1.2bn worth of damage on an economy that has essentially come to a grinding halt.

"Imports, exports, factories, firms, transport, everything is frozen," said Vasillis Korkidis, who heads the national Confederation of Hellenic Commerce. "The only sectors in demand are food and fuel."

1.58pm BST

Yanis Varoufakis' hopes of a quick deal do not seem to fit in with what the Germans think, it would seem.

German finance minister Wolfgang Schiuble has been speaking to Bild:

German FinMin Schiuble in Bild: Any new #Greece aid deal would take some time, needs 'new basis'

SCHAEUBLE TELLS BILD GREECE MUST DELIVER REFORMS TO GET AID

1.18pm BST

Three out of four members of business group the Institute of Directors think it is likely Greece will be forced to leave the eurozone within the next twelve months.

In a new survey IoD members said the most probable outcome of Grexit would be "a messy default which negatively affects financial markets and creates pressure on other euro members." This outcome was considered likely by nearly two-thirds of the business leaders surveyed, while 45% also thought there was a risk of widespread bank runs in other southern European countries.

1.14pm BST

The European Financial Stability Facility - Greece's biggest creditor - has decided not to request immediate repayment or its near a150bn of loans in the wake of the country's decision not to make a a1.5bn payment to the IMF this week.

Nor did it waive its right to action, it said. Instead it opted for a Reservation of Rights on its loans to Greece. This basically means it keeps all its options open as a creditor as events unfold.

"The EFSF is Greece's biggest creditor. This event of default is cause for deep concern. It breaks the commitment made by Greece to honour its financial obligations to all its creditors, and it opens the door to severe consequences for the Greek economy and the Greek people. The EFSF will closely coordinate with the euro area Member States, the European Commission, and the IMF on its future actions."

1.05pm BST

Keeping Greece in the eurozone while easing its debt burden is correct and achieveable, according to Jeffrey D. Sachs, UN special advisor and author of The End of Poverty.

In a new blogpost he sets out four stages to achieve this:

First, I recommend that the Greek people give a resounding "No" to the creditors in the referendum on their demands this weekend.

Second, Greece should continue to withhold service on its external debts to official creditors in advance of a consensual debt restructuring later this year. Given its great depression, Greece should use its savings to pay pensioners, provide food relief, make crucial infrastructure repairs, and direct liquidity toward the banking system.

A Way Out for Greece, by Jeff Sachs http://t.co/TZtsT8bSjH

12.31pm BST

As if the chaos triggered by Sunday's referendum was not enough, Greece's defence minister Panos Kammenos has also caused waves with highly controversial remarks that the army can always "guarantee the country's internal stability." Our correspondent Helena Smith reports:

Much ado this morning in Greece over the defence minister's oddly-timed assertion that the country's armed forces have the role of not only securing external borders but internal security too.

Kammenos, who also heads the nationalist, right wing Independent Greeks party, the government's junior partner, felt fit to announce on Thursday (in the presence of prime minister Alexis Tsipras) that:

"This language is dangerous for democracy. It is an open threat against the rights and freedoms of the Greek people and of every citizen individually," said Fofi Genimmatas who heads the socialist Pasok party.

Speaking on Skai TV earlier, Athens' mayor George Kaminis also expressed consternation.

12.14pm BST

Campaign group Global Justice is at the British Museum to show solidarity with Greece:

We're at the British Museum this morning to say #OXI to looting! Solidarity with the people of Greece #ElginMarbles pic.twitter.com/YrjN5RlVDA

Members of the campaign groups Global Justice Now and Jubilee Debt Campaign have this morning unfurled a banner at the 'Elgin Marbles' in the British Museum with the slogan "OXI No - No More Looting - Support Greece"

Many see the statues as a symbol of how northern Europe 'looted' Greek wealth in the past, and protestors claim that the enormous international pressure being placed on Greece to institute austerity, privatisation and deregulation represents a similar looting today.

12.08pm BST

And now it seems Greek prime minister Alexis Tsipras is about to make another TV statement.

12.07pm BST

EC president Jean-Claude Juncker has said Greece's position will be weakened if the country votes no. My colleague Jennifer Rankin tweets:

No change in creditors' hardline. If the Greeks vote no, the Greek position is dramatically weakened, says Jean-Claude Juncker.

Even if yes vote we will face difficult negotiations, says Juncker.

11.27am BST

European Central Bank member Ewald Nowotny has said the emergency liquidity assistance for Greek banks will last until Monday:

ECB's Nowotny: Greek ELA Until Monday, To Discuss Further Steps On Monday - APA

11.19am BST

Questions about the Greek crisis? Put them to two of our writers who have been following the situation closely, feature writer Jon Henley and financial editor Nils Pratley, at 1pm BST today.

Follow the link to post your questions for the live Q&A:

Related: Greek debt crisis: live Q&A

11.13am BST

Here's more on the comments from Greece's deputy finance minister Euclid Tsakalotos, courtesy of the Kathimerini newspaper:

The Syriza-led government decided that a referendum was the only way forward as the proposal submitted by Greece's international creditors before talks collapsed on Friday "would never have been ratified by Parliament and would have brought down the government," Alternate Minister of International Economic Relations and chief negotiator Euclid Tsakalotos told Skai television on Friday morning.

Tsakalotos said that the Greek economy needs a "shock of optimism" with the removal, once and for all, of fears that Greece could be ousted from the eurozone.

11.07am BST

And a point that a no vote is a no against austerity, not against Europe:

Personally and to most people here I have talked to, are are voting no against austerity measures that are unsustainable, not to get out either from the Euro or Europe.

Simply because the European commission has threatened us with an exit doesn't mean we believe it's true or want it.

Sent via GuardianWitness

By Yiannis Retro

2 July 2015, 18:12

11.06am BST

Some contributions received from our Guardian Witness call-out.

Things seem calm in Corfu:

Tourists in Corfu seem completely unaware that anything unusual is happening in Greece. And why would they as the restaurants and bars are open and doing business as normal, as are the petrol stations and supermarkets which remain fully stocked with nobody panic buying. The ATMs are all working normally with no sign of any queues anywhere. The only place you see large gatherings of people are on the beaches, such as those in Ipsos which I visited today, and they are clearly not there for any political reason.

Sent via GuardianWitness

By ruffidea

2 July 2015, 18:22

11.02am BST

And an invitation to tonight's Yes rally:

10.55am BST

Meanwhile a decision is due on whether the referendum can actually go ahead. Helena Smith reports:

Greece's highest court, the Council of State has begun meeting in urgent session to consider the legality of Sunday's referendum..

At the request of the tribunal's vice president, Nicholas Sakellariou, the Council of State has begun meeting to consider whether the referendum should be cancelled on constitutional grounds. The court, the highest legal body in the land, was convened after two individuals contested the plebiscite.

10.51am BST

Here's a piece from Jon Henley on the costly referendum Greece can scarcely afford:

Its banks closed and being drained steadily of cash, its economic and political crises worsening by the day, Greece is scrambling to organise a referendum on Sunday that it can ill afford.

The leftist Syriza-led government of Alexis Tsipras says the cost of distributing ballot papers and paying monitors will be around a20m (14m), but the conservative opposition - citing finance ministry data - puts the final cost at closer to a120m.

The latest polls show the result on a knife edge. A survey published on Friday morning by the ALCO institute put the yes camp on 44.8%, against 43.4% for no, with 74% of respondents saying they wanted Greece to remain in the euro.

The referendum, the country's first since 1974, will use the same monitors and the same 19,000 polling stations as in the January general election that propelled Syriza and Tsipras to power.

10.49am BST

A temporary Grexit might be one way to help resolve the current crisis, allowing Greece to devalue the currency and become more competitive. That was the suggestion of Hans Werner Sinn of German economic research institute Ifo on BBC world service this morning.

Ifo's Hans-Werner Sinn:Greek referendum no vote doesn't mean Greece has to leave euro;but Greeks might be better off out of euro temporarily

Ifo institute's Sinn suggests temporary grexit; says euro depreciation is only a third of what Greece needs to be more competitive

10.41am BST

LADBROKES SAYS ODDS MOVING TOWARDS 'YES' IN GREEK REFERENDUM

According to Ladbrokes, 65% of bets placed thus far on the Greek referendum have been for the 'Yes' vote #Greece

10.39am BST

Talk about playing something down.

Germany's economy minister Sigmar Gabriel has said the Greek crisis is "a relatively small problem in Europe."

10.34am BST

Over in Athens the spectre of bank cash reserves running dry is the cause of mounting concern in official and financial circles. Our correspondent Helena Smith reports:

Is Greece heading towards a banking crisis? That is the question on the lips of government officials and senior financiers barely four days after banks were closed and capital controls imposed.

Reports all around Athens that there are no more 20 euro bills left in the ATMs.

10.32am BST

Eurozone retail sales for May have come in slightly better than expected, up 0.2% month on month compared to estimates of a 0.1% rise. The year on year rise was 2.4% compared to a 2.3% forecast.

Eurozone retail sales up 0.2% in May after 0.7% increase in April. Suggests consumers are still contributing to improved Eurozone growth

10.08am BST

Here's our report on the latest developments:

Greece's highest administrative court will rule on whether the country's bailout referendum violates the constitution, amid growing concern that the hastily organised vote falls short of democratic standards.

With less than 48 hours until polling day on Sunday, the yes and no sides will stage large rallies in Athens on Friday evening. The Greek prime minister, Alexis Tsipras, is expected to turn out at the no rally, having attacked his eurozone partners for trying to "blackmail" his country into accepting a bad deal.

10.04am BST

Following the earlier report that Greece's deputy finance minister Euclid Tsakalotos said the government chose a referendum because an agreement would not be passed by parliament, the man himself has tweeted to clarify:

IIIIII I1/4I II II^1IIfIIII^2IIIfI. II...II III... IIII IfIII IIII IIIII^1 III^1 I IIIIIIfI III IIIfI1/4II III II IIIIIIIfI III II I'II...II(R), III^1 I II^1II(R) I1/4II.

9.37am BST

Faster UK services & construction growth has offset a manufacturing slowdown in Jun. Producers hit by strong GBP #PMI pic.twitter.com/fpr50u6uwP

9.34am BST

And here's the UK services PMI, which showed the sector growing by more than expected:

[BREAKING] UK Markit/CIPS UK Services PMI (Jun) 58.5 vs 56.5 prior (Est. 57.5)

9.16am BST

Here's a roundup of the day's PMI data so far, and it's all relatively positive.

The eurozone composite PMI:

Eurozone economic growth and job creation at four-year highs in second quarter http://t.co/GTN93UoxQd http://t.co/EIg0C7tLWF

#Eurozone service sector PMI for June is confirmed at 54.4, the composite is revised up a touch to 54.2 from 54.1 initially ^KB

Strongest rise in Irish service sector activity since September 2006 http://t.co/s2Nif8LdWa

Markit/ADACI Italy Services PMI Jun: 53.4 (est 52.3; prev 52.5) -Markit/ADACI Italy Composite PMI Jun: 54.0 (est 53.3; prev 53.7) $EURUSD

French Service Sector Activity Growth Accelerates To 46-Month High In June $EURUSD http://t.co/PcvgKKrGXm

Spain's Business Activity Index at 56.1 in June, down from May's 58.4 #PMI http://t.co/NzmHxnpcRO

Spanish Services Activity Growth Moderates, Remains Sharp At End-Q2 $EURUSD http://t.co/rcSbqSSoBR

#Spain composite #PMI 55.8 in June (58.3 May). Signals c0.75% GDP growth in Q2 http://t.co/9Z6OwnTi6y pic.twitter.com/xraRihhw76

Final Germany Services Business Activity Index at 53.8 in June, up from 53.0 in May. Composite Output Index at 53.7 http://t.co/QsZgFL31cV

#China Services Business Activity Index at 51.8 in Jun down from May's eight-month high of 53.5. Composite at 50.6 http://t.co/YCZiNBPEJp

9.14am BST

Here's an idea of the timings for Sunday's referendum:

#Greferendum - Sunday's Timetable (BST): 0500 - Polls open 1700BST - Polls close Shortly after 1700BST - 1st exit poll (1/2)

#Greferendum - Sunday's Timetable (BST): 1900 ~ 20% of votes counted 2100 ~50% counted 2200 ~70% counted 0000 ~90% counted (2/2)

9.03am BST

Greece's deputy finance minister Euclid Tsakalotos has reportedly said that the government chose a referendum because an agreement would not be passed by parliament:

#Greece Tsakalotos admitted on SKAI tv that govt chose a refer so as to stay in power coz an agreement wouldnt pass in Parliament

9.01am BST

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