Greece gets until Sunday for proposals to stave off collapse

France, he said, is listening to those countries that accept the idea of a Greek exit from the euro but that it’s important for his country “to facilitate, and above all keep a broad perspective” on the fact that the idea of European unity is also at stake.

The eurozone’s top official, Jeroen Dijsselbloem, said he hoped the Greek government would make a written request as soon as Tuesday night or Wednesday morning to tap Europe’s bailout fund. Once that is in, the eurozone finance ministers would hold a teleconference to discuss the proposals and decide whether they can give Greece more loans.

Leftist leader Tsipras was greeted by a mix of boos and cheers as he addressed the European Parliament in Strasbourg, France, on Wednesday.

In the letter sent to the European Stability Mechanism earlier, the Greek government said it will “set out in detail its proposals for a comprehensive and specific reform agenda” by today at the latest.

The price of those loans was five years of austerity measures, and in Sunday’s Greek referendum voters overwhelmingly rejected more belt-tightening required by the creditors. In a defiant speech, he said his government was determined to reach a “viable agreement” with the country’s creditors. Tsipras faces intense pressure from creditors overseas and banks at home who all demand what Greece lacks: money.

Renowned economists including Thomas Piketty and Jeffrey Sachs also published an open letter to Merkel urging the leader of Europe’s biggest economy to cut Greece’s debt to “avoid further disaster”.

He said Greece’s earlier request for help shows “real advances” toward dialogue in the latest crisis, but warned of geopolitical consequences if Greece sinks into financial catastrophe, such as trouble dealing with high flows of immigrants from outside the European Union or worsening tensions with Russian Federation.

“The ball is in Greece’s court”, Italian Prime Minister Matteo Renzi said, calling Sunday “the final meeting on Greece”.

A Greek woman pauses near a broken bank sign in Athens on Wednesday.

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”.

European stocks advanced as Greek Prime Minister Alexis Tsipras told the European Parliament his government will submit a detailed economic-reform proposal in the next few days, with the aim to unlock further bailout aid.

Speaking immediately after Tsipras, the president of the conservative European People’s Party, Manfred Weber, made a scathing verbal attack, accusing the Greek leader of deceiving his people and of actively seeking a rift with Europe, despite his claims to the contrary.

Such assurances were needed, said Lew, for Tsipras to receive domestic backing for a deal.

By The Associated Press on July 8, 2015.

Greece has made a request for aid from Europe’s bailout fund as it rushed to deliver details of its proposed economic reforms in time to secure the country’s future in the euro and avoid a descent into financial chaos. “An agreement which will bring about the credible and necessary reforms”, he said.

The developments come as banks in Greece remain closed and are in danger of running out of cash.

Tsipras vowed to continue reforms but warned about the austerity-weariness of the public. “The money that was given to Greece never went to the people”, he said.

The Greek government has meanwhile extended bank closures and the €60 (£43; $66) daily limit on cash machine withdrawals until Monday.

“The Greek economy is on the verge of catastrophe, we absolutely need a deal on Sunday”.

And in unusually strong language, Christian Noyer told Europe-1 radio he predicted “riots” in Greece if no deal is reached.

Highlighting the anger with Tsipras, European Commission President Jean-Claude Juncker had a stark warning.