The Hamilton Spectator

‘Everybody was angry’

Greek PM comes back to table with frustrated creditors without plan to avoid ruin

- MIKE CORDER AND RAF CASERT

BRUSSELS — Eurozone leaders met the beaming smile of Prime Minister Alexis Tsipras with anger and frustratio­n Tuesday when it became clear the Greek leader came to their summit without a fresh written proposal on how to save his country from financial ruin.

With Greece’s banks just days away from a potential collapse that could drag the country out of the euro, Tsipras had been expected to offer up economic reforms in exchange for loans. Instead he came with only vague proposals and a commitment to back it up with real figures and a written plan on Wednesday.

“You know, there was a promise for today. Then, they’re promising for tomorrow,” said Lithuanian President Dalia Grybauskai­te. “For the Greek government it’s every time ‘manana.’”

Tsipras came buoyed by a triumph in Sunday’s referendum, where an overwhelmi­ng majority of Greeks backed his call to reject the belt-tightening reforms that creditors had last proposed.

But that domestic victory did not appear to give him much leverage in talks with foreign creditors, who know Tsipras needs a deal soon to keep his country afloat. Banks have been shut since last week and will not reopen before Thursday, cash withdrawal­s have been limited for just as long, and daily business throughout the country has come to a near standstill. So it was with surprise and anger that European leaders learned Tsipras did not yet have a written proposal for new rescue aid.

“I’m extremely sombre about this summit. I’m also sombre about the question of whether Greece really wants to come up with proposals, with a solution,” Dutch Prime Minister Mark Rutte said.

Greece’s eurozone partners have steadfastl­y said they want to help Greece stay in the currency club, but have just as often complained about Greece dragging its feet during months of negotiatio­ns.

“At a certain point, you need to get to the truth,” said Belgian Prime Minister Charles Michel, before asking: “Is there, yes or no, a political will of the Greek government?”

A Greek government official, who asked not to be named because of the sensitive nature of the discussion­s, said Tsipras was presenting a “common ground” to the 18 other leaders Tuesday, while a detailed proposal would come Wednesday.

He said the Greek government would submit a request for immediate financing in advance of five billion euros in loans due for repayment by the end of the month. He predicted a full political deal could be reached in two or three weeks.

German Chancellor Angela Merkel warned Tsipras he was dancing close to the financial abyss: “We are no longer talking about weeks, but very few days.”

“Everybody was angry,” said the official, who asked not to be identified because he was commenting on a closed meeting.

The eurogroup’s top official, Dutch Finance Minister 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, euro- zone finance ministers would hold a teleconfer­ence to discuss the proposals and decide if they can give Greece more loans.

One big sticking point in the talks is Greece’s demand that the terms of its bailout loans be made easier. European officials are split on the issue, with lead eurozone lender Germany still reluctant. The Internatio­nal Monetary Fund called last week for European states to accept longer repayment periods and lower interest rates on their loans to Greece. Many economists say that Greece’s debt burden, at almost 180 per cent of annual GDP, is unsustaina­ble for a country its size.

Normal commerce is now impossible in Greece. Small businesses, lacking use of credit cards or money from bank accounts, were left to rely on cash from diminishin­g purchases from customers, as Greeks hold on tight to what they have. And suppliers are demanding that businesses pay cash up front.

The lack of progress worried stock markets in Europe, where the Stoxx 50 index of top companies was down 2.1 per cent on Tuesday. The euro also fell, while Greece’s stock market remained shut since last week amid the bank closures.

 ?? MICHEL EULER, THE ASSOCIATED PRESS ?? Greek Prime Minister Alexis Tsipras leaves after an emergency summit of eurozone heads of state Tuesday promising a written plan on Wednesday.
MICHEL EULER, THE ASSOCIATED PRESS Greek Prime Minister Alexis Tsipras leaves after an emergency summit of eurozone heads of state Tuesday promising a written plan on Wednesday.

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