The Greek government plans to submit a reform package to the European Union on Wednesday in hopes of being granted fresh aid from the European Stability Mechanism (ESM), Eurogroup sources said Tuesday.
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Their comments came after Martin Schulz, president of the European Parliament, told a German radio station before the referendum that Greece would have to leave the euro if people voted “no”.
Greece has been granted two bailout programs worth a total of 240 billion euros ($336 billion Cdn) in loans from other eurozone countries and the global Monetary Fund. But the spending cuts and tax increases demanded as a condition for the loans have hit growth, sending the country into a six-year recession and pushing unemployment to 25 percent.
“I’d like to think both sides can find a compromise, but I’m not sure they can”, said Randy Warren, chief investment officer at Warren Financial Service, in Exton, Pennsylvania.
It does not mention how much money is being sought.
Greek officials had been scheduled to present the country’s alternative plan for paying down its massive debt.
Euro zone national officials were irritated that Juncker had gone beyond the agreed negotiating mandate of the three creditor institutions in his last-ditch diplomacy, and it is not clear that they will be more receptive to his ideas now.
The day ended with plans for a Sunday summit that top European officials signaled really will be Athens’ last chance to avoid leaving the eurozone.
Meanwhile Greek President Prokopis Pavlopoulos has written to European Union Council head Donald Tusk to set out what he wants from a solution, according to The Telegraph.
“The Greek government has a major interest in coming forward quickly with serious and credible proposals”, said Dijsselbloem, who is the Dutch finance minister and chairs meetings with his eurozone counterparts.
Euro zone finance ministers complained that their new Greek colleague Euclid Tsakalotos, while more courteous than his abrasive predecessor Yanis Varoufakis, had brought no new proposals to a preparatory meeting before the summit. A teleconference by the ministers themselves is not foreseen, he said.
Traders said the next few days could be crucial. It also hinted that it would like some form of debt relief from earlier bailouts.
Arriving at the summit, the German Chancellor Angela Merkel said Greece had to commit to reforms to secure new loans.
George Katrougalos, a minister for administrative reform, said that a decision must be made to reopen the banks, but “that’s probably is not technically possible this week”. “Though I have to say that it is not a question of weeks any more, but a question of a few days”.
Greeted by a mixture of boos and cheers from European MPs, the Greek premier added: “Our proposals for financing our obligations and restructuring our debt will not burden European taxpayers”.
It’s pretty incredible for Greece to waste the meeting, given the urgency with which the country needs a deal now.
“Therefore, we like selling euros on the 1.11 handle”.
But the capital controls have started to create economic damage.
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Giorgos Kafkaris, a 77-year-old pensioner, was among Greeks standing in line to withdraw cash at an Athens ATM on Tuesday. Greeks have also been restricted to cash or a foreign credit card to purchase air tickets.
