Japanese Economics Minister Akira Amari said on Tuesday Greece and the European Union should work hard to strike a win-win deal that would keep Greece in the currency union.
Greece and the EU should also take steps to limit the economic impact from the turmoil which has jolted financial markets, Amari said.
The minister spoke after Greek voters’ rejection of austerity measures over the weekend left its membership in the euro zone in doubt.
“Greece has already done a lot to restore fiscal discipline, such as cutting pensions and wages,” Amari told reporters.
“I understand why the Greek people are venting their frustration. Fiscal consolidation is not making progress. They are in deflation. The world expects Greece and the EU to cooperate on a final bail out plan.”
Japanese stocks and the yen were largely stable on Tuesday, but policymakers are worried that a messy Greek exit from the euro zone could trigger financial market volatility and endanger global economic growth.
France and Germany, the euro zone’s most powerful leaders, told Greece on Monday to come up with serious proposals in order to restart financial aid talks.
Raising the pressure on Greek Prime Minister Alexis Tsipras before a euro zone summit on Tuesday, the European Central Bank decided to keep a tight grip on funding to Greek banks.