Greece will face chaos, riots if deal not struck

Greek Prime Minister Alexis Tsipras was expected to deliver new proposals, but European officials, including Malta Prime Minister Joseph Muscat, have confirmed that Greece failed to present any new proposals.

French PM Manuel Valls said a possible “Grexit” would have a massive negative impact over European Union economies. Greece must make a 3.5 billion euro ($3.86 billion) payment to the European Central Bank on July 20. “We’ve got to strike a balance here”, he said.

With Greek banks due to remain closed on Tuesday and Wednesday, eurozone finance ministers have urged Mr Tsipras to make “serious” proposals with the risk of default growing everyday.

“I share this point of view expressed by Mister Hollande and Mister Valls but there is a red line, which is that the compromise must not destroy the credibility of the 18 other member countries of the euro zone”, he said on TF1 television.

“Europe is not in trouble, Europe is facing a Greek problem”, he said.

The size of Greece’s loan request on Wednesday was not immediately clear, but the country’s financial needs have most likely increased in recent weeks as its economy and banking sector have come under great stress.

Germany has however, warned against any unconditional debt write-off.

The Greek premier, however, said that Greece would sign a deal with its global lenders in the hope of a definitive end to Greece’s protracted financial crisis. “It’s about redistributing the (debt payments) over time”.

“France ill do everything so that Greece remains in the Eurozone because that’s where it belongs, at the heart of the European project, ” Valls noted.