Greek drama is scheduled at Brussels today as Greek Prime Minister Alexis Tsipras headed there to meet German counterpart Angela Merkel and French President Hollande in another attempt to resolve the country’s debt crisis.
- Today’s meeting stands very crucial as Athens last Friday rejected creditors’ proposal. Mr. Tsipras’s over criticism of the proposal at Greek parliament earned him the displeasure of many Euro zone officials, including European Union’s President Jean Claude Tritchet, who had refused a call from Mr. Tsipras after the proposal was rejected.
In their latest proposal creditors have asked Greece to meet budget surplus of 1% this year, 2% in the next and 3.5% by 2018 along with rise in VAT and pension reforms.
Accepting creditor’s proposal not only would have unlocked € 7.2 billion, the last remaining tranche, it would also have unlocked € 10.6 billion funds allocated for bank recapitalization to pay off € 6.7 billion due to ECB by August.
Instead Greek government has presented counter proposal that asking European Stability Mechanism (ESM) to pay off ECB due.
Some of Euro zone officials have scrapped the plan to be absurd and eyewash.
Focus will turn on Brussels today as Tsipras will try to persuade Ms. Merkel to reach a solution.
Euro is currently trading at 1.13 against dollar and 0.73 against pound.
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