US: Need for compromise between Greece, creditors

US: Need for compromise between Greece, creditors

FPJ BureauUpdated: Saturday, June 01, 2019, 12:24 AM IST
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Members of Communist Party affiliated trade union PAME march against austerity in Thessaloniki on July 7, 2015 as European leaders warned Greek Prime Minister today to present new bailout proposals at an emergency summit or risk leaving the euro, after Greeks defiantly voted 'No' to further austerity in a referendum. In June 5 referendum, Greeks voted by 61.31 percent to 38.69 percent to reject austerity terms in exchange for releasing more funds under an international bailout package. AFP PHOTO / SAKIS MITROLIDIS |

Washington : The US has said the needs of the Greek economy remain “the same” following the referendum in the country on Sunday, for which it urged “a compromise” between Athens and international creditors to come up with a package of reforms and financing, Efe news agency reported.

“The referendum is over, but our view here at the White House remains the same… it will require both a package of financing and reforms that will allow Greece to achieve, or at least be on a path towards some debt sustainability, but also be on a path towards economic growth,” White House spokesman Josh Earnest said in his daily press conference on Monday.

In the first statement from Washington after the resounding victory of the “No” vote in this Sunday’s referendum in Greece against the austerity measures demanded by international creditors, Earnest said the US has “long indicated that it’s our view that it’s in their collective interest for these differences to be resolved”, but noted that ultimately that it would be “the responsibility of the Europeans to resolve.”

Over the past few weeks, Washington has indicated to European leaders that the structural reform package should be accompanied by a bailout of the Greek debt, something about which countries like Germany and the Netherlands have been more than wary. However, “despite their significant differences… all sides do recognise they have a collective interest in trying to arrive at the package… that allows Greece to remain part of the eurozone”, Earnest said. Before the referendum, Obama was in talks with German Chancellor Angela Merkel and with Italian PM Matteo Renzi.

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