Greece threatens legal action to block its exit from the euro

Varoufakis' warning comes amidst widespread reports that Greece referendum on Sunday with determine whether or not it keeps the euro

"The Greek government will make use of all our legal rights," said Greek finance minister Yanis Varoufakis (Reuters)

The Greek finance minister Yanis Varoufakis has warned that Greece may take legal action to block its expulsion from the eurozone.

"The Greek government will make use of all our legal rights," Varoufakis told The Telegraph.

"We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable," he said.

Varoufakis' warning comes amidst widespread reports that Greece referendum on Sunday with determine whether or not it keeps the euro. The question put to voters is whether Greece should agree to bailout terms put forward by the International Monetary Funds, the European Union and the European Central Bank. But European leaders have made it clear the vote will determine Greece’s future in Europe.

"What is at stake is whether or not Greeks want to stay in the eurozone or want to take the risk of leaving," said French president Francois Hollande.

Sigmar Gabriel, Germany’s vice-chancellor and social Democrat leader said that it must be clear to voters what is at stake. "At the core, it is a yes or no to remaining in the eurozone," he said.

David Cameron told the BBC: "If they vote No, I find it hard to see how that is consistent with staying in the euro, because I think there would be a very significant default and a very significant problem. But it is for the Greek people to decide."

Greek banks and the country’s stock exchange remained closed on Tuesday after the European Central Bank refused to increase emergency funding, two days after a bailout extension was rejected by the Eurozone.

Over the weekend, Greek people rushed to withdraw their savings as it became clear that no more money would be made available.