EU leaders hold frantic text talks as they try to avert Greece debt turmoil

 
Decisions: Greek premier Alexis Tsipras (Picture: Getty)
Greek Prime Minister's Office via Getty Images
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Frantic text messages were being sent by European leaders to Greek prime minister Alexis Tsipras today in a bid to save his country from economic implosion and avert eurozone turmoil.

European Commission president Jean-Claude Juncker said he was texting the Greek leader as the clock ticked towards this evening’s summit of eurozone leaders. After being heckled in the European Parliament a riled Mr Juncker said: “Stop all this chatter about me looking at my telephone all the time. I am texting with the Greek prime minister.

“I have to do that today. I am doing my work, so stop this stupid banter. My aim is to prevent Grexit.” With banks in Greece reported to be days from running out of cash, Europe was divided over how to respond. Mr Juncker suggested that at their meeting in Brussels eurozone leaders could agree to another short-term solution: “The ball lies in the Greek government’s court. We must try and find a solution. It can’t be done today — today we’ll pave the way, through talks and mutual understanding, to put things in order.”

French president François Hollande said Athens had to make “serious and credible” proposals to secure a lasting bailout programme, with Paris insisting there is the “basis” for an agreement.

But German chancellor Angela Merkel is said to be taking a tougher stance, with Berlin more wary over whether Athens can be trusted to deal with its debt mountain. The replacement of outspoken finance minister Yanis Varoufakis with the more softly spoken Euclid Tsakalotos appeared to have improved the mood in negotiations.

Germany’s EU commissioner Günther Oettinger added: “The parties in Greece are no longer at odds, but rather recognise the difficult situation. So I think that today negotiations could be conducted better than a week ago.”

Mr Tsipras was due to put his latest proposals to eurozone leaders, following Sunday’s referendum in which the Greek people rejected by 61 per cent to 39 the tax rises and spending cuts being demanded by its creditors. Greece was reported to be calling for nearly a third of its debt to be discarded, £3 billion in cash provided to prop up its banks, and a repayment holiday to be granted.

With Greece’s bailout having expired, the European Central Bank tightened its requirements for emergency funding for the country’s banks — increasing pressure on Athens, which risks defaulting on its €323 billion (£228 billion) debt and plunging out of the single currency. The leaders of all Greek mainstream parties released a statement insisting the nation should stay in the euro.

“The recent verdict of the Greek people is not a mandate for rupture, but ... to continue and strengthen the effort to reach a socially fair and economically viable deal,” it said.

Banks will stay shut until Thursday at least. Cash withdrawals for locals are limited to €60 a day. The Foreign Office is urging Britons travelling to Greece to take enough cash to cover their visit, as well as medicines, as some pharmacies are running out.

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