Lack of new Greek proposals leaves eurozone on edge as euro exit looms

Eurozone nations showed the “political will” to help Greece reach a bailout deal at emergency talks in Brussels Tuesday despite a referendum that rejected creditors’ terms, new Greek finance minister Euclid Tsakalotos said. Asked why he had not brought a new set of Greek bailout reform proposals for the finance minister talks, which came ahead of a crucial eurozone summit, the newly appointed minister said it was “more complicated than that." With Greece’s banks just days away from a potential collapse that could drag the country out of the euro, Prime Minister Alexis Tsipras had been expected to offer up economic reforms in exchange for loans. Instead, his government said it would only present a plan on Wednesday.

For the Greek government, it’s every time ‘mañana.’

Lithuanian President Dalia Grybauskaite

Meanwhile, a source familiar with the country’s banking system said he expected some ATM machines to start running out of money by Wednesday, while another source, a banker in Greece, said there could be two days’ worth of money left in the system. One big sticking point in negotiations is Greece’s demand that the terms of its bailout loans be made easier. Eurozone nations are split on the issue, with lead lender Germany still reluctant. The International Monetary Fund last week called for European states to accept longer repayment rates and lower interest rates on their loans to Greece. Many economists say that Greece’s debt burden, at almost 180 percent of annual GDP, is unsustainable for a country its size.

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