Greek debt: Discord ‘may lead to bankruptcy – Tusk

Speaking amid a mix of boos and cheers at the European Parliament on Wednesday, Greek Prime Minister Alexis Tsipras vowed that a “credible” plan would be in creditors’ hands within the next 48 hours, and that it would include key changes to the country’s tax and pension codes.

Mr Tsipras said: “In many European countries, austerity programmes have been put into effect”.

“This is really and truly the final wake-up call for Greece and for us, our last chance”, he said, warning that failure “may lead to the bankruptcy of Greece” and cause geopolitical problems for Europe.

European leaders will hold a summit on Sunday to decide whether the plan is good enough.

The Greek politician quit his role as chief negotiator with Europe over the debt crisis facing his country, but is thought to have become a controversial figure with his seemingly unbending attitude to talks. Its aim, it went on, was to regain “full and affordable market financing to meet its future funding requirements as well as sustainable economic and financial situation” by the time the loan ends at the latest. Greek banks are closed and about to run out of money unless there is further cash liquidity from the European Central Bank or, perhaps, Santa Claus. That is hardly news since almost everything Greece does disappoints those leaders, but this time it was more frustrating than usual.

The lack of a breakthrough means Greek banks are nearly guaranteed to stay shut until at least Monday.

A sombre looking president of the European Union tonight called the crisis “the most critical moment in our history”. The euro advanced to $1.1041 from a five-week low of $1.0916 in New York trade on Tuesday.

“We have a Grexit scenario prepared in detail”. “We need to act swiftly so the whole world know the eurozone to take decisions”.

Euro area officials have indicated that the gap in expectations between Athens and its creditors may have grown even wider due to rapid decline in Greece’s economy since the country’s banks were subjected to tough controls at the start of last week. The country’s European bailout package has also expired.

On Thursday, German Finance Minister Wolfgang Schaeuble said the possibility of some kind of debt relief would be discussed over coming days, though he cautioned it may not provide much help.

The meeting of economy and finance ministers from the eurozone nations in the Belgiium’s capital Brussels concluded on Tuesday without Greece presenting any new proposals to resume negotiations with its partners and creditors, although the parties agreed very soon to request a third bailout.

On Wednesday, Greece submitted a request for a three-year bailout from the European Stability Mechanism – a European Union agency that provides loans.

There was no immediate reply from the ESM made public.

(AP Photo/Emilio Morenatti). Pensioners wait outside the main gate of the national bank of Greece to withdraw a maximum of 120 euros ($134) in central Athens, Thursday, July 9, 2015.

‘But one which gives us a sign that we are on a long-lasting basis exiting from the crisis, which will demonstrate there’s light at the end of the tunnel.’.

“I would suggest that these propositions should make economic sense and should be fair”.