EU blocks Greece from bailout talks until after the referendum

The EU will not have more bailout talks with Greece until the country votes in the referendum on Sunday, July 5.

Dutch Finance Minister and Eurogroup President Jeroen Dijsselbloem said in a video statement that Greece will not be allowed to continue negotiations because the country's Prime Minister Alexis Tsipras effectively told the country to reject what they propose anyway.

In the video statement, Dijsselbloem delivered his response to the two letters that Tsipras sent to creditors — one asking for more money and the second discussing proposals — and why talks are temporarily stalled:

The main decision was that given the political situation, the rejection of the previous proposals, the referendum which will take place on Sunday, and the "No" advice of the Greek government, we see no grounds for further talks at this point. There will be no further talks for the coming days at a Eurogroup level or with the Greek authorities or institutions on proposals or financial arrangements. We see simple wait now for the outcome of the referendum on Sunday.

You can watch Dijsselbloem deliver his full statement here.

Yesterday, Tsipras spoke live on state TV and the big takeaway was this: Sunday's referendum is still on, and Greeks should vote "no" to the bailout proposals.

Tsipras' latest letter to creditors leaked hours before the address, showing he was willing to accept most of the existing bailout proposals.  He also hit out at Eurogroup leaders who had warned Sunday's referendum could effectively be a vote on whether Greece stays in the eurozone. He said, "'No' does not mean rupture with Europe but a return to a Europe with values."

Currently, the fate of Greece in the eurozone hangs in the balance. As my colleague Mike Bird reported, contradictory polls are showing that any result is possible in Greece's upcoming referendum. However, what the Greeks would be voting 

Voting "No" would mean Greece rejects proposals from its creditors, which would include austerity and reforms. It would also likely lead to Greece leaving the Euro. A "Yes" vote would mean the nation accepted the bailout conditions.

However, whichever way Greece votes, the proposals from European authorities and the International Monetary Fund expired when Greece defaulted on its payments on the June 30 deadline.

Business Insider's Mike Bird, who is in Athens at the moment, spoke to Greek politician Harry Theoharis and he said that Grexit will "100%" happen if "No" wins on Sunday.

Until 2014 he was in charge of tax collection in Greece, and trying to reform the country's revenue-raising system. Now, he's a politician, and has represented the centrist To Potami party since the January 2015 election.

Join the conversation about this story »

NOW WATCH: How to skip long lines at the airport — just like the 1%