Sunday 25 September 2016

Greece on the brink of euro pullout

Published 12/07/2015 | 02:33

The prospect of Greece crashing out of the eurozone rose significantly last night after major differences emerged between finance ministers during crisis talks in Brussels
The prospect of Greece crashing out of the eurozone rose significantly last night after major differences emerged between finance ministers during crisis talks in Brussels

The prospect of Greece crashing out of the eurozone rose significantly last night after major differences emerged between finance ministers during crisis talks in Brussels.

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During a day of extraordinary drama, EU states lambasted Greece’s Syriza-led government over its attitude during negotiations to date.

Finance Minister Michael Noonan was the first senior figure to warn Greek PM Alexis Tsipras that he must rebuild trust with the eurozone —or face grave consequences.

But late last night there was an unexpected twist, after the Finns refused to support a third bailout for Greece due to domestic pressure. It emerged that a coalition partner threatened to pull out of the Finnish government— forcing the Finnish finance minister to adopt a harsh line.

Despite plans to extend the talks into the early hours, a decision was taken to adjourn until 11am this morning.

There is now effectively just 24 hours to avert a doomsday scenario for Greece on Monday. Such a scenario would see emergency liquidity assistance (ELA) cut — causing unprecedented chaos in the markets.

Finance ministers were in the process of putting together a text demanding a series of immediate reform measures for Greece before the talks adjourned just after midnight.

Independent News Service

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