During Wednesday’s parliament meeting in Brussels, European Commission President Jean Claude Junker said that no bailout agreement for Greece could lead to a bankruptcy for the indebted country which has already defaulted on a € 1.6 billion loan to the IMF after its anti-austerity leaders walked away from bailout proposals from their creditors that contained austerity measures.
ECB governing council member Christian Noyer explained on Wednesday there will be no more emergency lending to Greece’s banks without a new deal by Sunday which is Greece’s latest deadline to work out a new deal with its creditors.
At the summit meeting yesterday Eurozone summit leaders released a statement that states the Greek government will submit a reform proposal by Thursday to the three institutions, another term for their three creditors, for closer review.
On Saturday Greece’s creditors will meet and determine whether it is appropriate to open negotiations on a conditional loan program.
On Sunday all European Union leaders will convene and decide the outcome of Greece’s bailout proposal.
Today in Brussels, Greek PM Alexis Tsipras used familiar statements that he has used over the past 5 months in Athens and said that Greece needs a growth program to help end the debt crisis.
Tsipras explained that a “no” vote in Sunday’s referendum vote is a mandate for a solution without mistakes of the past.
“We need a front loaded growth program. Without growth, we will not be able to exit the crisis” Tsipras stated.
Tsipras also said that Greece will reform for a future bailout deal that keeps the country in the Eurozone.
“Let me assure the house that, quite apart from the crisis, we will continue with our reform undertakings,” Tsipras said.
“We demand an agreement with our neighbors” Tsipras said.
“But one which gives us a sign that we are on a long lasting basis exiting from the crisis, which will demonstrate that there’s light at the end of the tunnel. Our prime objective must be to combat unemployment and to encourage entrepreneurship” Tsipras added.