Update - France: No 'Automatic Exit' Of Greece From Euro

French Finance Minister Michel Sapin said Monday the "No" vote in the Greek referendum does not mean an automatic exit from the eurozone, and urged Athens to come back with proposals immediately to restart negotiations.



Speaking on French Europe 1 radio, Sapin said: "There is a risk of leaving the euro but there is no automatic exit, in the same way that the vote doesn't mean automatically that Greece stays in the euro. What will determine whether it stays or leaves is the quality of negotiations that will start".



He added that the basis for dialogue with Greece after the vote remains open, stressing that talks on reducing the country's debt burden were "not taboo".



"If, having won back their pride, they can return to negotiations, so much the better," Sapin said, adding: "It is up to the Greek government to make proposals now".



Sapin also denied reports suggesting President Francois Hollande had asked Greek Prime Minister Alexis Tsipras to remove his finance minister, Yanis Varoufakis, who unexpectedly resigned on Monday morning.



Alternate Finance Minister Euclid Tsakalotos has been tipped to replace Varoufakis, official sources told Anadolu Agency on Monday.



Sapin said such decisions are made by Tsipras.



In Sunday's referendum, more than 61 percent of Greek voters backed their government's stance and voted "No" to further austerity measures proposed by its creditors; turnout hovered around 60 percent.



However, for opposition French presidential hopeful, Alain Juppe, the EU should organize Greece's exit from the eurozone "without any drama".



"Greece is no longer capable of sticking to the disciplines of the eurozone," said Juppe in a statement.



French Economy Minister Emmanuel Macron opposed Juppe's appeal, saying he was against a Greek exit.



"Personally, I do not share this opinion at all," Macron told reporters in Marseille.



According to Christian Noyer, governor of the Bank of France, the Greek debt cannot be restructured.



"The debt of Greece within the eurosystem is a debt which, by nature, cannot be restored because it would be a monetary financing of a state, which opposes Article 123", Noyer told reporters in Paris.



Article 123 of the EU's Lisbon Treaty prohibits monetary financing of government deficits which is regarded as inflationary.



Hollande will hold a meeting with German Chancellor Angela Merkel Monday evening in Paris ahead of Tuesday's EU summit to discuss the Greek situation.



Meanwhile, the European Commission vice-president for the euro and social dialogue has said it is possible to reach a solution on the Greek crisis if all sides work seriously.



In comments made to the media at a news conference in Brussels on Monday, Valdis Dombrovskis said: "One thing is clear… the place of Greece is and remains in Europe… all sides need to respond responsibly for the sake of Greek people".



"The outcome of the referendum certainly has made things more complicated…If all sides work seriously it's possible to find a solution even in this very complicated situation," he said.



In a series of tweets Monday, Dombrovskis also dismissed claims of threats to the eurozone's stability.



"The stability of the #Eurozone is not in question - we are willing and able to ensure financial stability by all available means. #EC," he tweeted.



"In the #Eurozone we have 19 democracies, we need a solution acceptable to all. 'No' makes this more difficult, need to work responsibly," he added in another tweet.



Greek banks have been shut since Monday as the European Central Bank did not give Greece more emergency funding.



The Eurogroup is set to meet in Brussels on Tuesday to discuss Greece. - Brüksel