Greece is rapidly running out of cash and all eyes are now on Greek Prime Minister Alexis Tsipras to pull off another big victory. This time, his test is to convince 18 other countries of the Eurozone for a new loan amount to save Greece’s dying economy.
Tsipras is said to present a new set of proposals before the Eurozone emergency summit in Brussels. The big win on the July 5 referendum where 61 per cent of the voters voted against austerity measures, has certainly given Tsipras new found power at the negotiating table.
Many experts see this as Greece’s last chance to stay in the Eurozone.
On Monday, a day after the results, both Germany and France called on Greece to make detailed proposals to revive bailout talks.
“The door is open to discussions,” said French President Francois Hollande after crisis talks in Paris with German Chancellor Angela Merkel.
“It is now up to the government of Alexis Tsipras to make serious, credible proposals so that this willingness to stay in the eurozone can translate into a lasting programme,” Hollande said.
“I stress the fact that time is running out and there is urgency — urgency for Greece and urgency for Europe,” Hollande warned.
“We are now waiting for very precise proposals from the Greek prime minister, a programme that will allow Greece to return to prosperity,” said Merkel, adding that Eurozone countries had already shown “a lot of solidarity with Greece — the last proposal was very generous “.
She also added that it was also vital to respect the views of all 19 Eurozone countries.
On Monday Greek finance minister Yanis Varoufakis resigned to make way for Euclid Tsakalotos. Varoufakis announced he was stepping down to try to ease friction with creditors.
So far, The European Central Bank, which has been keeping Greek lenders afloat, announced it would maintain its liquidity lifeline to Greek banks, but made it harder for them to access the funds by tightening collateral terms.
Meanwhile, in Washington, International Monetary Fund (IMF) chief Christine Lagarde said the IMF was ready to assist Greece if asked.
“The IMF has taken note of yesterday’s referendum held in Greece. We are monitoring the situation closely and stand ready to assist Greece if requested to do so,” Lagarde said in a statement.