Greek Prime Minister Tsipras Talks To European Leaders Ahead Of Tomorrow’s EU Summit

annAhead of an emergency EU Summit on Monday over Greece’s bailout package, Greek Prime Minister Alexis Tsipras offered his latest proposal over the phone to German Chancellor Angela Merkel, French President Francois Hollande, and EU Commissioner Jean-Claude Junker, his office reported.

“The prime minister presented the three leaders Greece’s proposal for a mutually beneficial agreement that will give a definite solution and not postpone addressing the problem” Tsipras’ office said in a statement.

The substance of Tsipras’ proposal is unknown but it’s believed to contain some form of debt relief along with concessions regarding Greece’s pensions and tax increases with VAT (value added tax).

Greece’s three institutional lenders, consisting of the IMF, EU, and ECB have insisted that Athens remains committed to a pathway that doesn’t include debt relief but instead embraces reforms with Greece’s pensions and VAT tax increases.

The emergency summit in Brussels on Monday will be attended by the 19 Euro area finance ministers and their national leaders and is aimed at having Greece avoid defaulting on their loans and possibly being the first country to exit the 19 member currency bloc.

Greek Prime Minister Tsipas will be arriving in Brussels tonight after holding an earlier cabinet meeting in Athens to discuss the terms of the debt bailout proposals that are now on the table.

Greece’s temporary €240 billion bailout extension expires on June 30th and a final loan disbursement of at least €7.2 billion is desperately needed to help Athens make payments on its debts, including €1.6 billion that is owed to the IMF at the end of the month.

Last week Greece’s banks came under pressure and saw increased deposit outflows after a compromise with Greece’s lenders appeared to be stuck at an impasse.

On Friday the Bank of Greece submitted an urgent €3.5 billion request to the European Central Bank to help recapitalize Greece’s banks.

Reuters reports that deposit outflows reached €4.2 billion last week.

-Johnathan Schweitzer

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