EUROZONE-GREECE/EUROGROUP ARRIVALS UPDATE Eurozone finance ministers divided over attitude to adopt with Greece

Record ID: 148175

  • Title: EUROZONE-GREECE/EUROGROUP ARRIVALS UPDATE Eurozone finance ministers divided over attitude to adopt with Greece
  • Date: 7th July 2015
  • Summary: BRUSSELS, BELGIUM (JULY 7, 2015) (REUTERS) SLOVAKIAN FINANCE MINISTER, PETER KAZIMIR, ARRIVING AND WAVING TO JOURNALISTS
  • Embargoed: 22nd July 2015 13:00
  • Keywords:
  • Location: Belgium
  • Country: Belgium
  • Topics: General
  • Reuters ID: LVA50A7HMUADK5CM7RVNRF4EGS67
  • Aspect Ratio: 16:9
  • Story Text: Eurozone finance ministers urged Greece to present credible reform proposals on Tuesday (July 7) to persuade sceptical creditors to reopen aid talks before the country's banks run out of money.
    The Eurogroup was a preparatory meeting for a later summit of eurozone heads of state and government, at which Greek Prime Minister Alexis Tsipras must convince the bloc's other 18 leaders, many of whom are exasperated with five years of crisis, to authorise negotiations fast on a new loan to rescue Greece.
    But Greek officials said the leftist premier's proposals would not go far beyond a plan he sent to the eurozone last week before Greek voters overwhelmingly rejected the austerity terms of a bailout in a referendum on Sunday.
    Italian Economy Minister Pier Carlo Padoan said he was going to the Eurogroup meeting with a constructive spirit to find a deal.
    "Obviously a lot will depend on how the Greek government presents itself and I hope it will present itself in a very constructive manner," he said.
    At stake at the emergency summit beginning at 6 p.m. (1600 GMT) in Brussels is more than just the future of Greece, a nation of 11 million that makes up just 2 percent of the eurozone's economic output and population.
    If Greek banks run out of money and the country has to print its own currency, it could mean a state leaving the euro for the first time since it was launched in 1999, creating a precedent and fuelling doubts about the long-term viability of an incomplete European monetary union.
    German Finance Minister Wolfgang Schaeuble has made no secret of his scepticism about Greece's fitness to stay in the euro and last week suggested a possible "temporary" exit.
    "Without a programme there is no possibility to help Greece within the frame of the eurozone. Of course the EU has obligations to help Greece but what we're waiting for eagerly is a decision from the Greek government," he said.
    Spanish Finance Minister Luis de Guindos said it was up to the Greeks to avoid a Grexit.
    "I don't think Grexit is a solution that suits anyone but obviously the Greek government needs to put its conditions on the table. In these moments the ball is in the Greeks' court," he said.
    Maltese Finance Minister Edward Scicluna said it was possible Greece might leave the monetary union.
    "I think it's a 50-50 thing. It's no longer, the word Grexit is being mentioned, but not as a stick but as a possibility, it's a realistic possibility. But really we should study both and evaluate both proposals to be in (the eurozone) and also for Greece to be out," Scicluna said.
    Without some firmer pledge of debt relief, neither Greece nor the International Monetary Fund is likely to accept a deal. Finnish Finance Minister Alexander Stubb said the Eurogroup was not willing to ease Greece's debt burden.
    "We're not willing to ease Greece's debt burden, we did that already in 2011, we did that also in 2012. We fully respect the result of the referendum. The door of the negotiations remains open but at the same time that door is very conditional and I think we're all running out of time, the latest by July 20," he said.
    A bank closure in force in Greece was prolonged until Thursday at least, and cash withdrawals remain limited to 60 euros a day, with 20 euro notes running out.
    The Athens stock exchange was also ordered closed for two days in Tuesday and Wednesday to throttle speculation.
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