The euro zone later gave Greece until Sunday July 12 to submit proposals that avoid Grexit (Greek exit from the community of Euro), the worst case scenario.
The euro zone later gave Greece until Sunday July 12 to submit proposals Grexit avoid the worst scenarios, following an extraordinary summit to which the Greek government came, once again, empty-handed.
The summit, preceded by a meeting of finance ministers from the euro zone, both urgently convened following the resounding rejection of the Greeks to the austerity measures demanded by the country’s creditors, imposed to Athens detailed to present “credible”.
proposals Athens “has until Thursday at the latest” to present to its creditors a package calendar reform the European Council President, Donald Tusk if he wants to resume negotiations on a new aid plan, he said.
On Sunday, the 28 leaders of the European Union, including 19 in the euro zone, he meet in a “decisive” to resolve the Greek crisis, said for his part the president of the Italian Council, Matteo Renzi.
Before the Eurogroup will discuss “this new program on Saturday” summit added its part French President Francois Hollande.
The “black scenario”
The “situation is really critical,” said Tusk who can not “exclude the black stage,” he said, that is to say, the exit of Greece from the euro zone.
“The failure to find an agreement can lead to the breakdown of Greece and the insolvency of the banking system,” he said.
The European Commission said its president Jean-Claude Juncker, “is ready for everything. We have prepared a possible ‘Grexit’ detail “.
” We need a program for several years to go beyond what we discussed 10 days ago, “which envisaged extending the second bailout-which expired on 30 junio– until November, German Chancellor Angela Merkel said in both.
Merkel made clear that “a remission of debt is out of the question”, in response to one of the claims of Athens whose huge debt almost 180% of GDP is considered unsustainable.
The Greek prime minister, Alexis Tsipras, said “continue the effort” to get an agreement “to ensure an exit from the crisis” and “end” the prospect of a ‘Grexit’.
On Wednesday July 8 Tsipras will address the plenary of the European Parliament in Strasbourg, France.
The new Greek finance minister, Euclid Tsakalotos , which replaced the controversial Yanis Varoufakis, acknowledged that the euro zone was “political will to give a new opportunity to Greece”.
In Athens, a source from the Greek government said that Greece “improved” proposals presented last week. However, a source with access to the conclave said that “ministers were disappointed (…) would have sped things (but) time is running out”.
On Sunday, 61% of voters Greeks rejected in a referendum the proposed reforms of the creditors of Greece, EU and IMF, a victory that became almost a plebiscite to Tsipras and his struggle against austerity.
But many of its partners begin to be sick and refuse to continue helping Greece, which received two bailouts totaling 240,000 million euros since 2010.
The remaining uncertainty about Greece drove down the euro against the dollar. By 21:00, the euro traded at $ 1.0961, its lowest level in five weeks.
Coma induced
Greece is in default ( suspension of payments) with the International Monetary Fund for a week.
The Greek authorities have extended the corralito decreed on Monday last week that prevented the Greeks get 60 euros per day and person banks survive on emergency aid still injects the European Central Bank to keep them in a “coma”, but has tightened conditions.
The situation is critical. Athens matures in July with private creditors, but especially with the ECB on 20 July. If not paid or agreed, the institution of Frankfurt could end the life of Greek banks, pushing the country toward an exit from the euro zone, as unfamiliar terrain that even contemplate European treaties.
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