Greece threatening to default
You have to act sensibly, that is what makes the current talks with Greece so tiring.
Greece has threatened to default on its debts if the eurozone and International Monetary Fund try to impose austerity measures in return for loans the country needs to avoid looming bankruptcy.
Alexis Tsipras, the Greek prime minister, was summoned to Brussels yesterday to be told that his proposals, delivered on Tuesday and intended to lead to the unlocking of 7.2 billion (NZ$11.34b) in aid, had been rejected.
With Greek banks close to collapse, the country’s woes deepened yesterday after airport authorities said that they had run out of money to maintain the electronic systems used by commercial air- craft to land. Airport officials on Lesbos, Greece’s third largest island, said that they were stopping all night flights as a result.
At least three other tourist destinations – Kos, Skiathos and Santorini – may follow suit. The move would devastate revenues from tourism.
Many European leaders are exasperated by the Greek government’s manoeuvring over a debt deal. Mark Rutte, the Dutch prime minister, accused Tsipras of failing to honour the austerity agreements that were the condition for Greek bailouts of 240b granted since 2010.
‘‘There is no negotiating,’’ he said. ‘‘What we have to do is to make clear to Alexis Tsipras that we respect that there is a new government but they have to respect that Greece, as a country, has made certain agreements with the EU and they have to live up to those agreements.’’
Tsipras was presented with an ultimatum, including a list of demands from his country’s creditors, at a private dinner with Jean-Claude Juncker, the EC president. He also spoke by telephone to German Chancellor Angela Merkel and French President Francois Hollande.
The French president appeared more sympathetic to Greek demands. ‘‘Asking too much of Greece would prevent the return of growth,’’ he said. ‘‘We are days, even hours away from a possible resolution.’’
Wolfgang Schauble, Germany’s finance minister, dismissed the Greek offer of reforms.
‘‘You have to act sensibly, that is what makes the current talks
Wolfgang Schauble Germany’s finance minister
with Greece so tiring,’’ he told reporters. ‘‘Syriza succeeded in talking Greeks into believing there is a simpler way to stay in the euro, a way without major reform efforts. Perhaps they shouldn’t have made promises like that.’’
An initial 300m repayment is due to the IMF on Saturday, with an additional 1300m due in two further payments over the following fortnight.