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Update: Temporary Greece Exit Might Happen If Bailout Deal Is Not Reached

Update: Temporary Greece Exit Might Happen If Bailout Deal Is Not Reached
European Union Flag Justus Blümer/ Flickr CC license


Update: Temporary Greece Exit Might Happen If Bailout Deal Is Not Reached

During an emergency summit on Sunday, Euro Zone leaders has told Greece’s Prime Minister Alexis Tsipras that he must commit to and enact certain reforms in order to convince them to begin negotiations on a third bailout program that amounts to as much as 86 billion euros ($95.5 billion), Reuters has learned.

Moreover, the BBC reports that the said emergency summit took place just as a summit involving all the members of the European Union was cancelled.

European Council president Donald Tusk has proclaimed the emergency meeting will “last until we conclude talks on Greece.”

Read: Greece appeals for more loans before proposal

Upon arrival at the meeting, Tsipras has said, “I’m here, ready for an honest compromise.” He also added, “We can reach an agreement tonight if all parties want it.”

Meanwhile, Eurogroup Leader Jeroen Dijsselbloem has explained, “We have had an in-depth discussion of the Greek proposals, the issue of credibility and trust was discussed and also of course financial issues involved.” He added that the current negotiations are anything but simple. He remarked, “It is still very difficult but work is in progress.”

The Guardian reports that not everyone in the Euro Zone is in agreement about what to do next, especially when it comes to Germany and France.

A paper drafted by the German Finance Ministry reveals that that Tsipras’ last proposal, in their view, is not enough. The paper explained, “These proposals lack a number of paramount important reform areas to modernize the country, to foster long term economic growth and sustainable development.” The said reforms they are looking at involve labor, public sector, banks, privatization as well as structural reforms.

Without these, Germany believes there may need to be a temporary Grexit.

According to the paper, “In case, debt sustainability and a credible implementation perspective can not be ensured upfront, Greece should be offered swift negotiations on a time-out from the Eurozone, with possible debt restructuring.”

The said time-out would be implement for “the next five years.”

Moreover, the paper had also stated, “The time-out solution should be accompanied by supporting Greece as an EU member and the Greek people with growth enhancing, humanitarian and technical assistance over the next years. The timeout solution should also be accompanied by streamlining all pillars of the Economic and Monetary Union and concrete measures to strengthen the governance of the Eurozone.”

In response to this, French President François Hollande stated, “There is no provisional Grexit. There’s Grexit or no Grexit.” Moreover, he added, “Or to put it simply in French, there is Greece in the eurozone or Greece outside the eurozone and that would be a Europe that is regressing, not advancing. I don’t want that.”

Meanwhile, France’s Finance Minister Michel Spin has referred to the German suggestion as mere “gallery entertainment.”

Moreover, Germany Chancellor Angela Merkel has also said that the current talks would be “difficult,” according to CNN Money. She has also stated that “there won’t be a deal at any price. As of date, Greece’s loan since 2010 is around 233 billion euros.


Morning News USA has just learned that Belgian Prime Minister Charles Michel (who is in the emergency meeting) just sent out this very brief tweet message:


About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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