The Prime Minister Alexis Tsipras has been given an ultimatum with certain commitments and deadlines, following Tuesday evening’s meetings in Brussels.
The major problem faced by the Greek Prime Minister, following Sunday’s referendum, is one of credibility, with the French President Francois Hollande, German Chancellor Angela Merkel and European Commission President Jean-Claude Juncker demanded that Greece accept a four-month bridge program that must be accompanied by specific prior actions, which must be submitted and passed through Parliament in Athens by Sunday.
At the same time the Greek government must submit an application for a third bailout that will address the financial problem in the long term. Should the prior actions of the bridge program be fulfilled, then the new bailout to follow will include provisions for debt relief, similar to those promised to the Samaras-Venizelos coalition government in December 2012.
According to safe reports, the Greek Prime Minister requested a one-month bridge program, but this was denied as the other European leaders feared that elections may be called. Under major pressure, Mr. Tsipras is said to have promised to present a comprehensive proposal by Friday morning.
With a European Union Summit – rather than a Eurozone Summit – being called for Sunday, the stakes are high as Greece’s position in the European Union may be in jeopardy, rather than just its membership in the single currency. Time, as it would seem, is running out for the Greek government and there is very little room to maneuver.
