The United States urged Athens and its creditors euro zone to reach agreement on the financial future of Greece, underscoring the international concern over the impact on the global economy of the country’s bailout bogged down .
Jack Lew, US Treasury secretary, suggested the two sides being “practical and pragmatic” to try to resolve their differences, and warned that a prolonged confrontation is a risk to destabilize the European Union .
“I do not think there should be informal talks about the kind of resolution that will eventually leave Greece in instability or the European Union instability,” Lew said on the sidelines of a meeting of the group 20 finance ministers in Istanbul.
The government of President Barack Obama intervened regularly during the five years of crisis in the eurozone, but largely kept a low profile since the market calm returned to economic bloc two years ago. The sudden public intervention Lew is a sign of great concern in Washington that there is talk publicly about a possible Greek exit from the euro zone.
However, leaders of the European Union to apparently dismissed warnings from EU. There was little sign of a breakthrough before the emergency meeting today of the finance ministers of the euro zone, even though the proposed Yanis Varoufakis revised achieved, the Greek finance minister, prompting relief in financial markets.
Wolfgang Schäuble, the German finance minister, rejected the Greek plan and hoped that comply with the terms of the current bailout of 172 billion euros before considering new proposals.
“We do not negotiate a new program,” Schäuble said. “We already have a program.”
The Greek bailout expires later this month. Alexis Tsipras, the new Prime Minister promised not request an extension.
The euro zone officials said today at a meeting of the Eurogroup that was a way to begin negotiations so far were performed through public pronouncements. The frustration of officials of the European Union increased, with what they believe is a misunderstanding of the procedures in the European Union by the Greek government and expect the meeting Varoufakis give you the opportunity to start formal talks about how you want to proceed Athens .
“It’s an opportunity for ministers to know the proposal Varoufakis,” said Pierre Moscovici, economic director of the European Commission. “It will also be an opportunity for him to see how they react to this ministers from other member states.”
Officials hold out hope that if they can convince Varoufakis that this guide is approved formal talks at the Eurogroup meeting on Monday.
The plan is to use Varoufakis debt swap to reduce Greece’s debt burden and square up between 5000 and 8 billion euros by issuing Treasuries to keep the country afloat while composing a new agreement.
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