‘5 days to save euro’ as Greece gets new deadline for a deal
THE heads of the European Union last night warned there were just five days to save the euro.
Leaders of all 28 member states – including David Cameron – were summoned to a meeting on Sunday billed as the ‘final deadline’ to reach a deal on Greece after talks crumbled last night.
European Council president Donald Tusk said: ‘The stark reality is that we only have five days left to find the ultimate agreement.’
German chancellor Angela Merkel revealed for the first time that leaders have been discussing the possibilities of a parallel currency if Greece falls out of the euro.
European Commission president Jean Claude Juncker added: ‘We have a Grexit scenario prepared in detail.’
Mr Tusk said they had taken the extraordinary step of summoning all 28 leaders to the meeting about the future of the euro – including those not in the single currency – because of the gravity of the situation.
Earlier, it emerged 16 of the 18 eurozone states believe Greece should be forced out. Only France and Cyprus continued to stand by Greek premier Alexis Tsipras.
As they arrived at yesterday’s talks, EU leaders complained they were ‘tired and exasperated’ at the situation.
In farcical scenes, Greece’s newly appointed finance minister Euclid Tsakalotos arrived at the summit carrying scribblings on hotel notepaper instead of a new set of proposals to end the impasse.
The scrawlings in English included the words ‘no triumphalism’ – thought to be a reference to Greece’s referendum result on Sunday. Jeroen Dijsselbloem, president of the Eurogroup, said finance ministers had only received a verbal outline of how Greece thought it could move forward.
Eurozone officials said they were told Greece would ‘maybe’ submit formal proposals today. Dutch prime minister Mark Rutte warned that without these ‘it will be over soon – we won’t be able to help them’.
He added: ‘It seems they have put the old proposals on the table again.’ Eurozone countries gave their most outspoken warnings yet that it would be the Greeks who suffer if it fails to reach a deal.
Latvian minister of finance Janis Reirs said a Grexit would ‘not be a problem for Europe’. He added: ‘If in a system there’s an element that doesn’t work, its removal won’t harm the system and in some cases can even be a positive.’
Johan Van Overtveldt, the Belgian finance minister, said Greece’s economy and banks are ‘in freefall’, while Edward Sciluna of Malta said: ‘Countries are tired, exasperated and suspicious.’
Lithuanian president Dalia Grybauskaite called what the Greeks presented as ‘only picture but not papers’, adding: ‘[With] the Greek government it is every time mañana.’
Meanwhile Mr Tsipras received a letter from Fidel Castro praising his ‘ brilliant political victory’ on Sunday when the Greeks voted against austerity measures to secure further bailouts.
GREEK firms have started paying staff in cash as the country’s banks run short of money. Three companies including Kotsovolos, its biggest electronic appliances chain, which is owned by Britain’s Dixons Carphone, have taken the decision.
‘Countries are tired and exasperated’