Wednesday’s emergency Eurogroup will be crucial for Greece as its European partners will judge the country’s proposal for a new bailout program. The new Greek government has five days to come up with a new, satisfactory financial aid plan as its proposals so far have failed to convince its European creditors and especially Germany. Time is short for Athens as it has only five days to come up with a plan that will satisfy European finance ministers in order to prevent the worst. Greece has already received a warning shot from the European Central Bank, after the decision to stop accepting Greek state bonds as collateral for funding. Then, European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici spoke using ultimatum terms. Yesterday, German Finance Minister Wolfgang Schaeuble met with his Greek counterpart Yanis Varoufakis and after the meeting he stated that at the moment the differences between Greece and Europe cannot be bridged. Germany is adamant that the new Greek government should respect the current bailout program, implement required reforms and flatly refuses a debt haircut or the end of austerity. Governor of Bank of Greece Yiannis Stournaras told Vice President Yiannis Dragasakis yesterday that the clock is ticking for Greece and a new plan must be ready by Wednesday’s Eurogroup. The Greek finance minister spoke to the Press Friday ahead of a meeting with U.S. Treasury officials saying that the current bailout program is the cause of recession and the debt is unbearable and unsustainable. When asked how Greece will convince lenders that a new financial aid program is needed, Varoufakis said, “Through reason, which is a European idea.”
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