Greek PM Alexis Tsipras has resumed
talks with international creditors, with time running out to find a
solution to Greece's debt crisis.
A late-night session with the
European Commission, the European Central Bank (ECB) and the
International Monetary Fund (IMF) failed to close the gaps.Eurozone finance ministers hope to endorse a deal when they meet again, ahead of a summit of EU leaders.
Greece must repay a €1.6bn (£1.1bn) IMF loan by next Tuesday or face default.
That could lead to Greece exiting the eurozone, with possible repercussions for the rest of Europe and the world economy.
Only once agreement is reached will creditors unlock the final €7.2bn tranche of bailout funds for cash-strapped Greece.
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European Commissioner Pierre Moscovici struck a hopeful tone ahead of Thursday's talks, tweeting: "Where there's a will there's a way."
The latest Greek proposals are believed to include:
- New taxes on businesses and the wealthy
- Selective increases in VAT
- Savings in pensions linked to curbing early retirement and increasing pension contributions
- No further reductions in pensions or public-sector wages - "red lines" for Greece's left-wing Syriza government
Mr Tsipras has criticised Greece's creditors for rejecting his ideas, which they say are not viable.
Pensioners in Greece fear the effects of more austerity imposed by lenders
Correspondents say they include far more tax rises and far fewer spending cuts than creditors had suggested, and the IMF in particular is refusing to accept them.
'Determined' effort
The Greek prime minister resumed talks on Thursday morning with IMF leader Christine Lagarde and European Central Bank head Mario Draghi as well as Jean-Claude Juncker, the president of the European Commission, and Eurogroup leader Jeroen Dijsselbloem.Technical experts met several hours earlier to continue deliberations.
On Wednesday, eurozone finance ministers cut short an emergency meeting meant to finalise a deal, when it became clear there was no deal to discuss.
"Unfortunately we have not reached an agreement yet, but we are determined to continue work," Mr Dijsselbloem said.
Greek debt talks - main sticking points
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- Greece has refused to accept cuts to pension payments or public sector wages
- The IMF is pushing for deeper spending cuts, not just more tax rises
- A key point of friction is a special benefit paid to some low-income pensioners, which creditors want scrapped
- Creditors also want a wider VAT base; Greece says it will not allow extra VAT on medicines or electricity bills, and has also resisted calls for VAT hikes on hotels and restaurants
- Athens wants a concrete commitment to debt relief, something its creditors are not offering
Chris Morris: Tsipras may face impossible choice
How did Greece get in this mess?
The Greek crisis threatens to overshadow the EU summit opening on Thursday afternoon.
Also on the agenda will be the migration crisis, which has seen thousands of illegal migrants arriving in southern Europe, and security concerns in the wake of the conflict in Ukraine.
UK Prime Minister David Cameron will also outline his plans for reform of the EU ahead of an in/out referendum to be held in Britain before the end of 2017.
Tight schedule - the week ahead
- Thursday-Friday: Finance ministers to put finishing touches to a debt deal if reached; then scheduled meeting of all 28 EU member states - any agreement could receive leaders' backing here
- Saturday-Tuesday: Agreement will need to be approved by Greek parliament and other eurozone governments - including vote in German Bundestag
- Tuesday 30 June: Deadline for Greek repayment of €1.6bn to IMF
