The European Commission stated that the negotiating efforts resume only if Greece presents new proposals, while the Greek Government reaffirmed its rejection of wage and pension cuts and rising taxes on basic goods.
* .- * Greece and its creditors hardened their positions today following the failure of talks aimed at avoiding a cessation of payments and the possible departure of the Hellenic nation euro zone.
This stalemate led the European Commissioner for Germany to say that it was time to prepare for a “state of emergency” in the euro area.
The premier Greek , Alexis Tsipras, ignored requests from European leaders to act fast. Instead, he blamed creditors by the collapse Sunday of funding negotiations in exchange for reforms, the biggest setback so far in talks to secure more aid for Greece, which preface already for months.
Tsipras said his government has a responsibility to defend the dignity of Greece and said he would resist demands to carry out further cuts in pensions.
“It’s not a matter of stubbornness ideological. It has to do with democracy, “said the leftist leader of 40 years, who was elected on a promise to end austerity.
Athens now has only two weeks to find a way out of the deadlock Current before facing a payment of 1,600 million euros owed to the International Monetary Fund ( IMF ), which could leave the country without effective, unable to borrow and outside the Euro zone.
Germany and other creditor nations demanded that Athens recover reason and offer new proposals.
“It will not work that Greece lays down the conditions and say ‘everybody has to dance to our pace ‘. Greece must return to reality, “said Volker Kauder, parliamentary leader of the conservative Chancellor, Angela Merkel, the channel ARD .
ask for proposals
The European Commission stated that only resume the negotiating efforts if Greece presents new proposals, while Hellenic Executive spokesman said that Athens remains steadfast in its refusal to cuts in wages and pensions and the higher taxes on basic goods.
“We have largely exhausted our limits,” said government spokesman Gabriel Sakellardis.
The office of Tsipras said Greece is ready to resume meetings at any time and awaiting a signal from their lenders that could loosen the deadlock.
“If you call something new, may as well give them something new,” said an official.
A Greek government spokesman also rejected a report in the German newspaper Sueddeutsche Zeitung said that Greece had plans to impose capital controls this weekend if negotiations.
Despite the deepening crisis, Tsipras will go ahead with a planned visit to Russia on Thursday, the day when the finance ministers of the euro area hold a crucial meeting to review the situation in Greece.
Prime Minister Greek plans to stay until Saturday to attend an economic forum in St. Petersburg and meet with President Vladimir Putin.
EU officials indicated that if Greece does not present improved for Thursday proposals, the Sign of the Eurogroup would be very hard and probably would present an ultimatum to the Hellenic country.
“If there are no new proposals, I think it’s time to tell them or take it or leave it, or almost,” said a official of the euro area.
Markets
Although there were few visible signs of panic in Athens because the Greeks still rely on a solution-a last-minute affair family in five years of crisis, the latest setback sparked a selloff in European and Asian stocks and affected the euro.
The Greek banks saw Monday deposit outflows by nearly 400 million euros (449 million dollars), an increase in the rate of cash withdrawal from last week, bankers said.
The president of the European Central Bank, Mario Draghi, said that the institution will continue to approve financing Emergency Greek banks as they remain solvent, although closely monitor that has sufficient guarantees.
Draghi stressed to the European Parliament depends on elected politicians, not central bankers decide the future of Greece and the ECB can not allow liquidity to be used illegally to fund the Greek government.
First contagion
Global financial markets suffered the first serious outbreak of contagion from the Greek crisis this year.
The premium investors demand to buy Treasuries governments of Spain, Italy and Portugal hit its maximum 2015 versus German Bunds low risk.
The Greek shares lost 5.3 percent, while banking shares tumbled more than 10 percent. Yields on government bonds Greeks to two years increased by more than 3 percentage points to 29.02%.
The chances of Greece leaving the euro zone this year are almost one in three, showed on Monday a Reuters survey among operators of European money market, more than estimated just a month ago.
“We should work on an emergency plan for Greece would fall into a state of emergency,” said the European Commissioner Germany, Günter Oettinger.
“energy supplies, payment to police officers, medical supplies and pharmaceuticals and much more” must ensure, he said.
Tsipras blamed the latest stalemate the “political expediency” of lenders and their insistence on new cuts in pensions “after five years of looting bailouts”.
Harta so consider a Greek distortion of the proposals of creditors, the European Commission made public for the first time extensive details of the plan, denying that lenders are demanding specific cuts in pensions and wages.
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