ATHENS: Greece Prime Minister Alexis Tsipras heads to Brussels for talks after finding himself boxed into a corner as creditors prepare to deliver a final proposal to end the stalemate over a financial lifeline.
After European leaders and the head of the International Monetary Fund held talks in Berlin on Monday night, creditors agreed on a document designed to avert a default that will be presented to Greece. Tsipras, who said the only plan on the table was one his government submitted, will meet European Commission President Jean-Claude Juncker on Wednesday.
Four months of sparring and missed deadlines have given way to a greater urgency to end the impasse and decide Greece’s fate. While stopping short of an ultimatum, the latest twists put the onus on Tsipras’s anti-austerity government to shelve some election promises or jeopardize the country’s euro status. “The need for a deal is so big, after such a prolonged liquidity crunch, that the relief for the wider public will eventually trump the cost of compromise,” said George Pagoulatos, a professor of European politics and economy at the Athens University of Economics and Business.
The euro rallied on Tuesday on optimism about a Greek deal, gaining 2 percent against the dollar. Greek bonds also rose, with the yield on the two-year security falling 96 basis points to 23.9 percent in Athens. Dutch Finance Minister Jeroen Dijsselbloem, who leads the euro-area group of his counterparts, meanwhile said an accord is still far off. German officials, who spoke on condition of anonymity, said their government was skeptical that a deal can be struck before the Group of Seven summit in Bavaria on June 7.
