Speaking in Brussels on Tuesday, he said the Greek government “continues its efforts with the people’s mandate as a weapon, and its desire for a viable agreement that brings an end to this story and guarantees an exit from the crisis“.
Advertisement
However, he said the best way for Greece to regain the confidence of the rest of the euro zone was to implement reforms immediately, even before striking a deal with creditors.
If Tsipras does not get a deal, Greece faces an nearly inevitable collapse of the banking system, which would be the first step for the country to fall out of the euro.
My position was absolutely clear from the start: “I want Greece to stay in the Eurozone and I’m prepared to be one of the ministers around the table that negotiates a settlement”, said Mr Noonan.
Greek banks remain closed for a second week, with ATM withdrawals limited to 60 euros a day.
Asked if a deal to save Greece could be wrapped up, Draghi said: “I don’t know, this time it’s really hard”.
European Union Economics Commissioner Pierre Moscovici is hopeful that a new Greek bailout deal is possible, in exchange for “concrete, complete” reform proposals from Greece’s government.
Tsipras said Greece’s troubles predated his arrival in office in January and condemned the “austerity experiment” his country has endured over the past five years that he blames for spiraling unemployment and poverty.
Many economists say that Greece’s debt burden, at nearly 180 percent of annual GDP, is unsustainable for a country its size. Greece has had two bailouts from its European partners and the global Monetary Fund since May, 2010, totaling 240 billion euros ($260 billion).
“With this proposal, the Greek people and the Greek government, confirm their commitment to, fulfilling reforms that will ensure Greece remains a member of the Eurozone, and ending the economic crisis”, Tsipras writes in a letter to creditors that was published by the Financial Times.
The advance came after Donald Tusk, who will chair this Sunday’s meeting in his capacity as European Council President, said any Greek deal should include proposals from creditors over how to make the country’s debts sustainable.
In ideal circumstances, a summit of all 28 European Union leaders would be able to approve it on Sunday. The Stoxx 50 index was up 0.3 percent. Otherwise, the European Central Bank will keep a lid on funding for Greek banks, and events will spiral out of control.
Other countries using the euro have poured billions into Greece, and resist fiercely any suggestion that some of that debt should be written off. Then there’s the precedent that would set: Portugal and Ireland, for example, met the terms of their bailouts but still owe billions in emergency loans.
“We are determined not to have a clash with Europe but to tackle head-on the establishment in our country and to change the mindsets which have taken us and taken the eurozone down”, he said. German Chancellor Angela Merkel, who many believe will have the last word on the crisis, ruled out a positive response to Greek Finance Minister Euclid Tsakalotos’s appeal to the European Stability Mechanism for help.
The eurogroup’s top official, Dutch Finance Minister Jeroen Dijsselbloem, said he hoped the Greek government would make a written request as soon as Tuesday night or Wednesday morning to tap Europe’s bailout fund. Once that is in, the eurozone finance ministers would hold a teleconference to discuss the proposals and decide whether they can give Greece more loans.
Advertisement
And instead of abolishing a 30-per cent tax break on all its islands, as requested by creditors, the government said for right now it only wants to scrap the measure on the wealthiest islands and those most popular with tourists.
