Tensions rise as Greece’s certain proposals rejected

Greek official quotes Prime Minister Alexis Tsipras saying Greece’s proposals to unlock further aid are not accepted by international creditors, while Greece rejects new counter-proposals offered by creditors

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

As debt-strickten Greece is running out of time to avert a possible default and consequently exiting the eurozone, Greek Prime Minister Alexis Tsipras said creditors rejected proposals presented by Athens to bridge a budget gap. A Greek official stated that Tsipras has attacked the stance of “certain” creditors as “strange.”

The Greek prime minister made these comments just before leaving to Brussels to gather at the emergency meeting called by Greece’s three creditor institutions - the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF).

The statement by the Greek official did not include which proposals Tsipras was referring to and which of the three institutions he was blaming was also unknown.

"The non-acceptance of offsetting measures has never happened before. Neither in Ireland nor in Portugal. Nowhere!" the official quoted Tsipras as saying.

"This strange attitude can only mean one of two things: either they do not want an agreement or they are serving specific interests in Greece," Tsipras said in a tweet.

Meanwhile, Greece’s creditors presented new counter-proposals to Athens to overcome the indifferences. However, according to sources these proposals were rejected by Greece.

A European Union official close to the talks made clear that the talks were continuing. “Nothing has broken down, negotiations are going on and the meeting with Tsipras will go ahead as planned,” the official states.

German finance ministry spokesman said there is long way to go with Greece, and that it’s up to Greece to make a move towards reaching a deal.

Major differences remain between parties and as time is running out for Greece as the June 30 deadline when Greece needs to repay €1.6 billion ($1.79 billion) to the IMF or go into default approaches.

The source also added pensions, VAT and corporate taxation are listed as points which the two sides still can not agree upon. The issue of debt relief had not been addressed according to the source.

Greece has been pushing creditors to write off part of its huge public debt, arguing that without this step the economy would not recover from the crisis.

Upon the spread of the news, European shares fell sharply into negative territory on Wednesday. The pan-European FTSEurofirst 300 was down 0.6 percent having traded flat before the news. The top Greek share index extended losses to trade 3 percent lower.

TRTWorld and agencies