The President of the European CouncilDonald Tuskannounce on Sunday morning that the European Union Summit on the Greek debt crisis has been canceled, while the Eurozone summit will go ahead as scheduled, at 4pm Athens time, “until we conclude talks on Greece”.
Negotiations between Greece and its European partners began on Saturday and carried on until the early hours on Sunday, with the chief of the EurogroupJeroen Dijsselbloemcommenting that the talks were “very difficult, but work is in progress”.
Earlier on Friday, a series of measures was passed in the Parliament in Athens following a dramatic plenary session. While the measures received the support of the 251 MPs from nearly all parties, the main coalition government party SYRIZA saw a number of its MPs vote against them and expressing their opposition, arguing that the measures are a U-turn on the government’s pledge to end austerity.
During Saturday’s talks in Brussels, the German Minister of FinancesWolfgang Schaublereportedly proposed a “five-year Grexit plan”, which caused some controversy. The rationale behind this plan is that there is little faith that the Greek government can implement its reforms. While this proposal was not officially on the table, it nevertheless highlights the lack of trust amongst Greece’s European partners.
The negotiations for a new bailout package stalled when the Finnish Government called its Finance Minister to leave the talks, as he was not authorized to negotiate further aid for Greece. Along with Finland, Germany and Slovakia are also reportedly expressed doubts about a third bailout package to Greece, which may reach 100 billion euros, according toBild. Greece has found allies in France and six other countries, with the remaining six Eurozone members being undecided. The Eurogroup talks resume at noon (Athens time).