Its banks have been shut for a week, and cash withdrawals have been capped.
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So over the next few days, EU leaders expect Greece to hand over a proposal, which will be debated by European leaders.
“I’m extremely somber about this summit”.
He said that unfortunately the Greek government has not done anything to improve the economic situation in the country during this time.
The new Greek proposals will be discussed by eurozone finance ministers on Saturday.
Speaking immediately after Tsipras, the president of the conservative European People’s Party, Manfred Weber, made a scathing verbal attack, accusing the Greek leader of deceiving his people and of actively seeking a rift with Europe, despite his claims to the contrary.
So it really isn’t possible to predict whether Tsipras and Greece will be offered a better deal or not.
German Chancellor Angela Merkel, before and after the meeting, reiterated that Greece still has not met the basic requirements for further negotiations.
“The Greek government will send a new request letter for European Stability Mechanism (ESM) support, as soon as it comes in, I am hopeful that tomorrow morning we will have another conference call in the Eurogroup to formally start the process of dealing with the request”, Dijsselbloem said.
The official White House read-outs of the phone calls were terse, noting that Obama spoke with Tsipras on his “ideas for a path forward between Greece and its creditors” and reiterating that “it is in everyone’s interest that Greece and its creditors reach a mutually acceptable agreement“.
“It is now up to the government of Alexis Tsipras to make serious, credible proposals so that this willingness to stay in the eurozone can translate into a lasting programme”, said Mr Hollande.
“Everybody was mad”, said the official, who asked not to be identified because he was commenting on a closed meeting.
“The stark reality is that we only have five days to find the ultimate agreement”, Tusk, the ex- prime minister of Poland, said Tuesday.
After months of fruitless negotiations with Tsipras’ government, elected in January on promises to repeal bailout austerity, the skeptical eurozone creditor states have said they want to see a detailed, cost-accounted plan of the reforms.
The final crescendo of Greece’s long-running debt crisis forced the country’s banks to close last week and prompted anxious shoppers to clean out supermarket shelves due to fears of food shortages. Greece has had two bailouts from its European partners and the worldwide Monetary Fund since May 2010, totaling 240 billion euros ($260 billion). Many economists say that Greece’s debt burden, at nearly 180 percent of annual GDP, is unsustainable for a country its size.
Greece requested a new three-year rescue from its European partners Wednesday. “The money was given to save Greek and European banks”.
Normal commerce is now impossible in Greece. Certain bank branches opened last week to allow them to withdraw a weekly allowance of 120 euros each. And suppliers are demanding that businesses pay cash up front.
It means a €60 limit on ATM withdrawls is still in place. Now Citigroup joins the herd of investment banks that believe a so-called “Grexit” is the most likely outcome of the ongoing debt debacle. “What we’re going to do today is talk to each other, understand each other, show tolerance to each other and restore order to the situation”.
Monday: Brussels has convened a full emergency summit of all 27 European leaders.
And in Brussels, Tsakalotos – who replaced outspoken motorbike-riding predecessor Yanis Varoufakis after he resigned on Monday in a bid to ease the rift with Athens’s creditors – told reporters there had been “progress” at the talks.
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“The atmosphere at today’s eurozone summit was tense, some countries had reached the end of their patience after the referendum in Greece”. The government, meanwhile, has been slower than hoped in making the economy more competitive and selling state assets to raise money.
