EU leaders warn if Greece does not accept a rescue, they have a Grexit scenario prepared in detail
Brussels : Frustrated and angered eurozone leaders gave Greek Prime Minister Alexis Tsipras (pictured) a last-minute chance to finally come up with a viable proposal on how to save his country from financial ruin.
Overcoming their surprise when Tsipras failed to present them with a detailed plan, the leaders reluctantly agreed to a final summit Sunday, saying that could give both sides an opportunity to stave off collapse of the struggling but defiant member nation.
Underscoring the gravity of the challenge, European Union President Donald Tusk decided to call all 28 EU leaders to Brussels instead of only the 19 eurozone members, because, for the bloc, it “is maybe the most critical moment in our history.”
French President Francois Hollande agreed. “It’s not just the problem of Greece it’s the future of the European Union” that’s at stake, he said.
And highlighting the rising anger with Tsipras over months of foot-dragging and surprising negotiating twists, European Commission President Jean-Claude Juncker had a stark warning for Greece. “We have a Grexit scenario, prepared in detail,” he said, referring to the situation in which Greece would have to exit the currency union.
With Greece’s banks just days away from a potential collapse that could drag the country out of the euro, Tsipras arrived with only vague proposals and a commitment to back it up with real figures and a more detailed plan by Thursday.
Speaking to reporters, Tsipras said he made proposals to the leaders during the evening summit but it was unclear whether it meant anything more than the general direction of staving off too tough austerity and insisting on debt restructuring.
Yet he made clear he had gotten the message that there wasn’t a moment to waste as deadlines for debt payments that Greece cannot afford draw near. “The process will be swift, it will be speedy, it will begin in the next few hours with the aim of concluding until the end of the week at the latest,” Tsipras said.
According to a joint statement of the leaders, Tsipras must set out Greece’s proposals in detail for a reform agenda. The country’s international creditors will then assess the plan to prepare for another meeting of eurogroup finance ministers and ultimately Sunday’s summit of the full EU.
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France fears chaos, riots if deal not struck
Paris : France’s central bank chief on Wednesday said Greece will descend into “riots and chaos” if no debt deal is found soon, media reported.
“The Greek economy is on the edge of catastrophe. A deal must be made on Sunday because it will be too late after that and the consequences will be serious,” The Local news portal cited French central bank chief Christian Noyer as telling a French radio.He added that “there could be riots… and chaos in the country”.Noyer said it was “impossible” to reopen Greek banks while confidence was so low, saying there would be an “immediate run” on tellers.
The head of the French central bank is a member of the European Central Bank (ECB)’s decision-making governing council.
“We have rules and we have interpreted the rules to Greek’s limit to maintain a lifeline to their banks, but we cannot continue indefinitely to increase the risks we are taking,” he said.
After Greece failed to propose a fresh debt deal on Tuesday, the eurozone gave it until Thursday to present new proposals to secure a deal with creditors. A meeting of all 28 members of the European Union (EU) will be held On Sunday — a day after the new Greek proposals are expected to be discussed by the eurozone finance ministers.
Earlier, European Union Economy Commissioner Pierre Moscovici and President Jean-Claude Juncker said Europe wanted to stop Greece falling out of the eurozone.
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