Here we go again. Discussions between eurozone finance ministers on how to resolve the Greek debt crisis have broken down after Athens rejected counter-proposals from its creditors. It’s the fourth attempt – and failure – to come up with a deal that is acceptable to Athens and its international lenders in eight days. Talks are likely to resume on Saturday.
Greece’s eurozone bailout expires next Tuesday, when it is also due to repay €1.6bn (£1.13bn) to the International Monetary Fund. The Syriza government and the troika have been locked in five months of tortuous negotiations. We take a look at the dramatic events of the last fortnight.
Thursday 11 June
“The ball is very much in Greece’s court, There are major differences between us in most key areas. There has been no progress in narrowing these differences recently.”
IMF spokesman Gerry Rice explains why its negotiators have walked out of the Greece bailout talks, accusing Athens of failing to compromise over labour market and pension reforms.
Friday 12 June
“If the Greek government can’t accept the fact that there are no easy solutions and that the difficult decisions just must be made, it is alone. We can’t help Greece if Greece doesn’t want to help itself ... They have to come with serious proposals.”
Jeroen Dijsselbloem, the Dutch finance minister who will chair next week’s Luxembourg meeting, issues a stark ultimatum to Athens. German leaders and top European Union officials now concede that default is the most likely outcome. Negotiations between the leftwing government in Athens and its creditors are at their lowest ebb since Alexis Tsipras became Greek prime minister in January.
Saturday 13 June
“I don’t believe that any sensible European bureaucrat or politician will go down that road.”
Yanis Varoufakis, the Greek finance minister, says he does not believe Europe would let his country leave the eurozone.
Monday 15 June
“We need a strong and comprehensive agreement with Greece. And we need it very soon.”
The European Central Bank president, Mario Draghi, warns that time is rapidly running out to resolve the Greek debt crisis, as financial markets take fright at the prospect of a looming default. Tspiras shows no sign of giving in to demands to make the state pension less generous, raise VAT or water down his government’s plans to reform labour laws in favour of workers.
Tuesday 16 June
“The IMF has criminal responsibility for today’s situation.”
Tsipras threatens to withold IMF payments as tensions rise in the wake of another set of failed debt talks in Luxembourg.
Wednesday 17 June
“At the moment we haven’t got the money.”
Greece’s top negotiator, Euclid Tsakalotos, warns the country will not be able to repay €1.6bn to the IMF at the end of this month without a new bailout deal. Athens puts the onus on its creditors to prevent it being forced out of the single currency, warning that an economic collapse on a par with the Great Depression of the 1930s has left it broke and unable to pay its debts. The UK starts planning for “serious economic risks” arising from Greek exit from the euro.
Thursday 18 June
“We can only arrive at a resolution if there is a dialogue. Right now we’re short of a dialogue.”
Christine Lagarde, the head of the IMF, says there is an urgent need for negotiation “with adults in the room”. Greece faces a full-blown banking crisis after a meeting of eurozone finance ministers breaks down in acrimony and recrimination, forcing leaders to meet next week.
Friday 19 June
“The game of chicken needs to end and so does the blame game. This is not a game and there is no time for any games.”
ECB provides more emergency help as the European Council president, Donald Tusk, says Greece must choose between a “good” deal and a default.
Monday 22 June
“The most important thing is that the leaders take full responsibility for the political process to avoid the worst case scenario, which means uncontrollable, chaotic Graccident.”
Tusk issues a clear warning that he wants serious progress at an emergency EU summit. Tsipras receives a mock slap from the European commission president, Jean-Claude Juncker, when he arrives in Brussels. The Athens stock market surges 9%, and the summit ends with high hopes of reaching a deal within 48 hours. The new Greek proposals leak, revealing cuts of €8bn.
Tuesday 23 June
“We are fully aware that there are in the proposal, measures that are hard and which under other circumstances we would never take.”
Greek government spokesman Gavriel Sakellarides also says: “The climate has improved, we are closer to a solution.” The European Central Bank is rumoured to have agreed to provide more emergency liquidity to the Greek banking sector.
Wednesday 24 June
The non-acceptance of offsetting measures has never happened before. Neither in Ireland nor in Portugal. Nowhere! This strange attitude can only mean one of two things: either they do not want an agreement or they are serving specific interests in Greece.
Tsipras makes the comments before heading back to Brussels for emergency talks with Greece’s creditors and Europe’s leading politicians – the third time eurozone finance ministers have held meetings in less than a week. Talks carry on into the night, but there is no deal.
