EU correspondent in Athens: I have never experienced anything like this …….!!!!!
So much for the Greeks repay a loan before midnight today. The money will be handed over to the International Monetary Fund, IMF. But the country is not going to pay the installments. It announced the Greek Finance Minister Yanis Varoufakis last night.
A bad sign, says the EU correspondent Ole Ryborg from Athens.
– It’s never happened before that a Western country has been unable to pay their mortgage payments to the IMF. It happens to countries such as Zambia and not countries we regard as modern Western economies. So it is an incredibly bad signal, says Ole Ryborg.
Major difficulties in sight.
What you look at now, according Ryborg is how credit rating agencies are responding to the non-payment. So far the announcement, however, that national bankruptcy is not within the immediate vicinity.
– Credit rating agencies have said that they do not believe that you are bankrupt, if you do not pay to the International Monetary Fund. It is only if you do not pay the private debt – that is, those who have bought Greek government bonds, typically banks and pension funds, but also private, he says.
If Greece goes bankrupt, the European Central Bank have to unplug and stop supplying the Greek banks, and it would be disastrous for the country.
– If they pull it completely – Greece is in deep trouble, says Ole Ryborg.
On Sunday, the Greek people must vote for a referendum. Officially they vote on whether Greece should accept the country’s creditors latest compromise proposal, and the clear recommendation from the country’s government is putting its ticked no.
But since the referendum falls five days after the offer expires, assesses the creditors saying that the Greeks actually have to vote on whether the country should be part of the euro zone and not a member.
The announcement from the President of the European Commission, Jean-Claude Juncker is clear: Votes In yes, we will help you. Votes In no, it’s a no to Europe.
– But everyone’s instinct is that there must be a solution. You can not just let Greece and 10 million Greeks fall outside any system.
European Commission President, Jean-Claude Juncker, has sent an angry broadside against the Greek government.
The government in Athens, says Juncker, do not tell the Greeks the truth about the proposals made by the Commission to try to help Greece out of its deep debt problems.
– The debate in and outside of Greece would be easier if the Greek government would tell exactly what the Commission actually proposes. I blame the government for letting the Greek public know something, that is not consistent with what is told and recorded on video for the Greek Prime Minister.
The EU Commission sharpens the tone against Greece and has now for the first time decided to publish details of the compromise proposal to resolve the Greek debt crisis.
– We have already reduced the aims considerably. There has been quite large concessions and showed considerable flexibility, spokesman for the commission Annika Breidthardt. The goal is for Greece this year to achieve a primary budget surplus of one percent of gross domestic product in 2018, the goal is 3.5 percent. It is reduced from 4.5 percent at the same time, there are two years period – she says.
Last night struck another attempt to solve the Greek debt crisis error. The Greek delegation left the talks in Brussels after just 45 minutes.
Tsipras says to a Greek newspaper, the need for significant concessions by Greece’s creditors, and Greece will wait patiently. Nothing indicates that the Greek government will come up with a new proposal to solve the debt crisis.
French President Francois Hollande, transmitter according to the news agency dpa a sharp warning to Greece not to waste time.
– Take care now. There is no time to lose, we must look urgently to resume negotiations, says Hollande.
At the same time said Spanish Foreign Minister Jose Manuel Garcia-Margallo, according to AFP, that he sees a real risk that Greece may leave the euro.
Also from Germany comes a sharp warning from spokesman Martin Jaeger of Finance.