Greek debt proposal raises hope for a deal, but at a political price
Greece's proposed bailout concedes many of the previous demands of its creditors, including higher taxes and cuts in spending. Its left-wing government had staked its credibility on brinksmanship to force Europe and the IMF to bend.
Greece's proposed bailout concedes many of the previous demands of its creditors, including higher taxes and cuts in spending. Its left-wing government had staked its credibility on brinksmanship to force Europe and the IMF to bend.
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Greece's latest bailout request may have boosted its chances for continued inclusion in the eurozone and a brake on its economic tailspin. Its official creditors are studying聽Athens鈥檚 proposal ahead of crucial weekend meetings.聽
But the聽plan includes many elements rejected by Greek voters in a referendum last weekend. Greek Prime Minister Alexis Tsipras, who had urged voters to reject the previous bailout, must now go to parliament to seek approval.聽
Finance ministers from across the eurozone are meeting in Brussels on Saturday to discuss Greece鈥檚 debt and whether to grant its request to negotiate another bailout loan. An emergency meeting of officials from all European Union members is scheduled for Sunday.聽
Athens appears to have given in on two main sticking points, reports The New York Times: tax and pension overhauls and a demand for debt restructuring. The new proposal includes items such as tax hikes, cuts on defense spending, and the privatization of ports and airports.
The proposal, details of which leaked out late Thursday, has received praise from a number of eurozone leaders including the Austrian chancellor, Italian prime minister, and French President Francois Hollande, who called the proposed program, 鈥渟erious and credible.鈥�
Amid rising speculation in European capitals that Greece would be forced to exit the European Union because it was unable to agree terms with its creditors, many Greeks have remained optimistic, 海角大神 reports.
Still, there鈥檚 little time to spare, reports the BBC, given the dire situation of Greek banks that have been largely closed because of a lack of euros and great uncertainty over continued support from Europe's central bank.聽
鈥淚f a way isn't found to allow the banks to reopen within days - and the ECB simply maintaining Emergency Liquidity Assistance won't come anywhere near to achieving that - the Greek economy will implode so that any bailout deal agreed this weekend will become irrelevant in weeks," writes the BBC's economics editor, Robert Peston.聽
In Greece, opposition party leaders predict a 鈥渓arge majority鈥� of legislators will sign off on the government鈥檚 proposal in today鈥檚 vote, The Associated Press reports.
Rallies for and against the bailout are planned across Athens on Friday.