Euro zone sets emergency summit on Greece as money flees

The eurozone’s 19 leaders have been summoned to an emergency summit next week after talks about Greece’s bailout ended in acrimony on Thursday, intensifying fears that the country was heading for bankruptcy and an exit from the euro. Donald Tusk, who chairs meetings of European leaders, called them to Brussels on Monday evening to “urgently discuss the situation of Greece at the highest political level” — frustrated at the lack of progress less than two weeks before a big payment Athens has to make to the International Monetary Fund. It will be one of, if not, the most important meeting In the euro’s 16-year existence.

The key emergency, in my view, is to restore a dialogue with adults in the room.

IMF Managing Director Christine Lagarde

Greece is running out of time to secure a deal to get the money it needs to meet upcoming debt payments. First and foremost it has to pay around 1.6 billion euros ($1.8 billion) to the IMF on June 30. With the clock ticking, IMF Managing Director Christine Lagarde said Greece’s debt obligation is not up for negotiation. If no solution is found by the end of the month, it could be left to its own devices without even the support of the European Central Bank to prop up the country’s banks. Since Greece is effectively broke and relying on outside help, it may have no option other than to introduce a new currency — most likely the centuries-old drachma — to pay wages, salaries and pensions.

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