Resolution of the Central Union of Municipalities of Greece (KEDE) on the referendum of 5 July

YES to continuing negotiations, NO to the referendum

The Central Union of Municipalities of Greece wishes to state clearly and unequivocally that our country's place is in Europe.

That place is seriously undermined by the government's decision to announce a referendum for 5 July with a cryptic question which both fails to ensure the expression of the actual will of our people and jeopardises our country's position in the European Union and the euro area.

The inability so far of the government to reach an agreement with our European partners and the holding of the referendum on 5 July have already created a situation never seen before in an EU country.

Banks are closed, limits have been imposed on ATM cash withdrawals, humiliated people stand in queues - pensioners unable to draw their pensions, people at filling stations and supermarkets - and capital controls are scuppering all business activity, leading to company closures, dismissal of employees and more unemployment.

Local authorities say YES to Europe, NO to populism

At this critical juncture for our country, local authorities will not stand by and just watch events unfold.

Greece exiting the euro area and being cut off from EU funding would be catastrophic for us. It would lead to:

the loss of billions of euros in future funding from programmes such as the NSRF and Partnership Agreement, and the European Social Fund;

the collapse of vital municipal and social facilities and services, with programmes such as Help at Home or the operation of municipal childcare services being unable to continue;

thousands of jobs being lost across all municipalities, affecting our employees working in bodies or services funded by EU programmes;

enforced cessation of major projects throughout the country, across all municipalities, affecting schools, roads, public squares, urban regeneration, water and waste management, etc.;

cancellation of crucial social programmes to address the poverty and resulting social exclusion faced by millions of Greeks;

plunging agricultural incomes , as Greek farmers will no longer have access to EU funding and farm subsidies;

a complete inability to cope with, manage and provide support to the large number of inflowing migrants.

For all its problems, Europe is still the best place to be living today. Deciding to be outside of Europe would be a major risk to the way of life of all of us. But if we stay inside Europe we will have the opportunity to change for the better those things that currently concern us.

We must therefore choose the safer alternative and not gamble with our country's future.

For all the above reasons, Greece's municipalities:

unambiguously support a YES in the referendum on 5 July, because staying in Europe - whose values we embrace - and in the euro area is the safest decision for our country and its citizens;

oppose a NO vote on 5 July , not because we agree with the creditors' proposals but because a NO vote would mean Greece leaving Europe;

support a YES vote because otherwise, if our country leaves the EU, the municipalities will disintegrate and will be unable to fund projects or to run essential services to meet the needs of millions of people;

say YES, because this means Greece staying in Europe and a renewal of negotiating efforts, which will benefit all Greek citizens.