15th June 2015
Greece and European Union bosses have failed to hit a compromise in their latest round of negotiations in regards to the embattled nation’s bailout terms.
According to BBC News a European Commission spokesperson said while progress was made on Sunday, “significant gaps” remained.
Right now, the EU is telling Greece that its needs to make €2bn (£1.44bn) worth of cuts if it is to secure bailout funds.
The BBC report noted that Greek deputy prime minister Yannis Dragasakis said that Athens was still ready to negotiate with its lenders and that the submitted proposals had fully covered the fiscal deficit as demanded.
But Dragasakis added that the EU and IMF still wanted Greece to cut pensions, a move which it is not prepared to budge on.
The economically beleaguered nation must seal a deal with EU policymakers and crisis lender, the International Monetary Fund (IMF), before the end of this month if it wants to avoid a defaulting on its debts.
Eurozone bosses are reconvening on Thursday to look at the matter – and the meeting is being widely viewed as Greece’s last chance to find a compromise.
Commenting on the situation, Adam Chester, head of economic research and market strategy at Lloyds Bank commercial banking said: “This week could well be make or break for Greece. Although the deadline for the current bailout extension does not expire until the end of the month, this week’s Eurogroup meeting on Thursday could well prove to be the last realistic chance of reaching a deal.
“The reason for this is that any agreement needs to be approved by the various euro area parliaments, including the German Bundestag. Since the German Bundestag closes for the summer recess on 3 July, there may not be time to get the legislation passed if the negotiations spill into next week.”