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Sapin: Greek 'No' vote could lead to Grexit, 'Yes' to fresh talks

PARIS (Reuters) - A "No" vote in Sunday's referendum on cash-for-reforms proposals could lead to Greece leaving the euro zone, while the bloc would immediately resume work on a deal if the outcome was "Yes," France's finance minister said on Thursday.

France had led a diplomatic push to reach a last-minute deal before the Greek vote but gave up when Prime Minister Alexis Tsipras announced on Wednesday afternoon that he would press ahead with the vote, Michel Sapin said.

"Up until yesterday, France was trying because we were convinced it was possible to make a deal happen," he told iTELE in an interview. But "you cannot reach a deal with someone who tells you 'No'"

Euro zone finance ministers all agreed on that stance in a conference call that followed Tsipras's comments, he said.

"The Greek people may choose to vote "No" - to what, I'm not quite sure, but "No" nonetheless," Sapin said.

"If that's the case we would be entering unknown territory and a downward economic spiral, above all for Greece. That may lead -- although not automatically -- to Greece's exit from the euro, which I don't believe would be good for Greece."

France wants Greece to stay in the euro, he added.

(Reporting by Ingrid Melander, Marine Pennetier, Laurence Frost; Editing by Catherine Evans)