Biodun Iginla, BBC News

Biodun Iginla, BBC News

Sunday, July 12, 2015

Possible ‘Grexit’ nears as Brussels demands more austerity




Latest update : 2015-07-13

Eurozone leaders were still locked in negotiations early on Monday over a new bailout plan for Greece that demanded Athens either make tough economic reforms or take a “time-out” from membership of the single currency.

To recap recent developments:
  • The leaders of the eurozone’s 19 members are meeting in a last-ditch effort to prevent Greece from being forced out of the single currency.
  • Under discussion is a draft plan put forward by the eurozone’s finance ministers on Sunday that called on Greece to make significant economic reforms including to pensions, the labour market and privatisation before a new bailout could be considered.
  • The document gave Greece only until Wednesday to begin making the reforms. It also ruled out any debt reduction for Greece.
  • If no bailout can be reached, Greece could take a “time out” from the eurozone – in other words a temporary exit – to restructure its debts, the document said. It did not specify how long such a “time-out” would last.
  • The finance ministers estimated Greece needs between 82 and 86 billion euros in new funding to stave off bankruptcy.
  • Greek officials have slammed the proposals, according to reports, with one source calling it a “very bad” deal for Athens.
  • A meeting scheduled for Sunday afternoon, where the leaders of EU’s member states were set to discuss the consequences of a potential ‘Grexit,’ was cancelled at the last minute to give eurozone leaders a last chance to strike a deal.
  • French sources denied on Monday a report by a senior EU official that France could give Greece a bilateral loan to help it handle an immediate funding crunch pending agreement on a third bailout.
To see how developments unfolded on Sunday, scroll through FRANCE 24’s liveblog below.

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