Greece – Euro-zone plays Greece bankruptcy by – Frankfurter Rundschau

June 12, 2015

There is no agreement, Greece threatened with state bankruptcy. Photo: AP

During the back and forth in the Greek debt drama increasingly unsettled the markets, some representatives of the euro zone no longer seem to believe in an agreement. Estmals to a possible Greece have been -Pleite also discussed formally by Euro-representatives.

Brussels / Berlin / Athens –

Given the deadlock in the debt dispute the euro countries have first discussed in formal session on the impact of a possible Greek default. High-ranking representatives of the Euro-zone discussed several According to insiders, what will happen in the event of failure of the tough calls. But there was still no decision in the months of wrestling, told the familiar with the discussions on Friday to Reuters.

European Commission President Jean-Claude Juncker and the euro group chief Jeroen Dijsselbloem urged Greece to quickly agree on the reform of creditors’ claims. A spokesman for the government, however, pointed out that the negotiations would continue with the aim not to exceed the established of Athens red lines. Greece is ready to intensify talks on the political level

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Time is short – again

Among the representatives the euro zone it applies, according to the insiders as least likely option, that an agreement will be reached in the coming days. Such a compromise would allow the disbursement of funds in the amount of EUR 7.2 billion before the current aid program expires at the end of June. “That would progress within days presuppose that has not been reached within several weeks,” said a person familiar with the talks person. By contrast, some euro area countries would consider a Greek default now than likely scenario.

In the event of payment default Experts believe that the European Central Bank (ECB) must turn their purse strings for Athens the Greek Government introduced capital controls. In addition, they may be forced to issue IOUs, because they can no longer pay in euros as pensions and unemployment benefits.

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Another of the Euro- representatives discussed scenario includes, according to the insiders the opportunity to extend the current aid program. The discussed period varied from a few weeks to the end of March 2016. In March next year, and the program of the International Monetary Fund (IMF) for Greece ends. To the implementation of reforms in return for the payment of existing aid, the Greek government would not get around well in this scenario. The lenders want to make the Greek economy more competitive with hard cuts. The left government in Athens does but just austerity measures for years of misery in charge

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Markets are nervous

On Thursday the IMF negotiating team was surprisingly left out of Brussels and this was justified by “large differences” in the talks. The step had caused nervousness in the financial markets and give cause to fear that the negotiations have failed. On Friday, the German DAX fell by just under two percent.

The federal government is working in his own words, despite the dwindling time in remaining Greece in the euro zone, relying on well the Monetary Fund. The departure of the IMF team was to be understood as a warning to Athens, the spokesman for the Treasury said in Berlin. “A solution without the IMF is for us inconceivable”.

All reform proposals from Greece have so far been rejected by the creditors to be insufficient. If there is no agreement, threatened with state bankruptcy. A final option is to be the meeting of euro zone finance ministers on 18 June in Luxembourg, according to EU officials. (RTR)