Greece submits proposal to stave off Grexit fears

2nd June 2015


Greek Prime Minister Alexis Tsipras has made proposals to European creditors in a bid to stave off financial chaos.

The news follows an emergency meeting between German Chancellor Angela Merkel, French President Francois Hollande, European Commission head Jean-Claude Juncker, International Monetary Fund chief Christine Lagarde and ECB president Mario Draghi in Berlin.

The discussions were to try and reach a final proposal to offer the Greek government, but Tspiras was not invited to the crisis meeting.

Greece is due to make a €300m (£215m) debt repayment on Friday, but it is not yet clear whether it will be able to make the payment. Failure to do so may ultimatelylead to its exit from the eurozone.

Tspiras said “We have submitted a realistic plan for Greece to exit the crisis,” adding that the proposals included “concessions that will be difficult”.

Greece is at an impasse with its international creditors over securing the remaining €7.2bn of its bailout funds, the BBC reports.

The IMF, ECB and the European Commission are pushing Greece to make further austerity reforms, but Prime Minister Alexis Tsipras has so far not agreed to the measures.

Writing in a column for  Le Monde on Sunday, Tsipras said the deadlock in talks “is due to the insistence of certain institutional actors on submitting absurd proposals and displaying a total indifference to the recent democratic choice of the Greek people.”



10 thoughts on “Greece submits proposal to stave off Grexit fears”

  1. David Lilley says:

    This Greek thing has always annoyed me.
    Tsipras is not the democratically elected leader of Greece. Any fool can say vote for me and I will give you all a free ride or £1m each and win an election. But the truth is that “He who pays the piper calls the tune”. And Tsipris is definitely not paying the piper.
    The IMF has rescued 100s of countries from incompetent governments and knows the blueprint. We come in, we look at the books and tell you what you must do. You might have a 100% electoral majority but you need money and we are your only hope of getting that money. We run the country and not you. Your electoral mandate is out of the window. Take it or leave it.
    This blueprint has always worked with the exception of three or four creeps who have taken the help offered by their neighbours and then defaulted.
    Greece could have been sorted by now. The UK had the same 11% deficit as Greece in 2009 but look at where we are now compared with Greece.
    All for the want of the IMF blueprint.

    1. Anonymous says:

      who is the democratically elected leader of Greece if not Tsipras?

      1. David Lilley says:

        You are correct. My message is that you temporarily give up leadership when you go cap in hand to the IMF and take the money in return for their conditions. If this normal blueprint had been followed five years ago they wouldn’t be in the mess they are in today.

    2. Jive Bunny says:

      “Greece could have been sorted by now. The UK had the same 11% deficit as
      Greece in 2009 but look at where we are now compared with Greece.
      All for the want of the IMF blueprint.”

      Yes, exactly, look where we are compared to Greece.

      We spent more Public money in 2012 and 2013 than the IMF suggested and delivered a watered down austerity to the IMF’s suggestion.

      The IMF was very vocal in it’s criticism of the UK at that time in not following the IMF “blueprint” as you call it.

      In Greece we see a general idea of where we would have been had we followed the IMF blueprint. Admittedly, there are other problems in Greece such as poor payment of tax and rigid protective employment law so as I say, we have a general idea of where we would have been following the blueprint when we look at Greece, as Greece has made the cuts but not done the other part of improving tax collection and reforming employment law sufficiently.

      If you decide to reply, don’t get confused with Syriza’s recent statements about increasing pensions and public sector pay as this is Syriza who wants to do this in response to the real cuts that were made by the previous Greek Government.

      Regards the Troika’s blueprint, had I been in charge I would most definitely have left it, defaulted and left the EZ.

      1. David Lilley says:

        Dear Jive,
        Thanks for the discussion.
        UK government spending has increased every year since the coalition came to power in 2010. The IMF on its annual visit three years ago was adamant that we had to reduce austerity not increase it. They have subsequently admitted that they were mistaken.

        1. Jive Bunny says:

          Yes you’re right. However, prior to that visit in early 2012 the IMF was equally adamant that UK austerity at that time (which was later relaxed) was the “right thing” and should not be relaxed –

          Ever had the impression they don’t know what they’re doing? It is very rare when I make my predictions that I have to change them and I have only a fraction of the resource they have.

          1. David Lilley says:

            I have forgotten their (the IMF) description despite it being much repeated. But it was along the lines of inferno and the end of the world. It is only when we became the fastest growing economy in the G7 that they changed their tune and admitted their mistake.
            Dear Olivier, read the “Wealth of Nations” and forget about multipliers. A child could understand that our plan was the best plan.
            I agree that when no one else will spend the state must spend. But I also remember learning about the multiplier when I was 17. Create 1,000 real jobs and you get an extra 800 jobs in the from of teachers, policemen, shop-keepers etc. Rubbish. (A) get the real jobs and (B) if you could just press the multiplier button in a recession then why not press it in a non-recession and have full employment. The multiplier is magic dust.
            I love to argue.

          2. Jive Bunny says:

            David the IMF produced a paper here (not definitive ) that found they miscalculated “the multiplier” and that it was much higher than they thought.

            The other part of those text books to which you refer is that multipliers work the other way too, so to use your analogy – cut 1000 jobs and you destroy another 800 jobs which is what has happened around the world except in the UK and US and a few others (Sweden and Switzerland spring to mind but then they never bothered doing any austerity). The salient question is why didn’t it happen in the UK and US?

            I don’t know but would guess it was something to do with Osborne bringing forward infrastructure expenditure planned for future years to the present along with a muted aggregate demand fall due to the operation of the “automatic stabiliser” of the comprehensive social security system which goes a long way to explaining why the deficit is still here and the national debt is bigger than ever.

            The US just eased and eased – QE1, QE2, QE3 along with Operation Twist plus reflating the housing market through a number of ingenious devices in the form of guarantees that cost nothing but have the potential to break the Fed if they are called upon.

          3. David Lilley says:


            The essence of the problem is that the IMF blueprint (professional approach) has been denied.

            This from Reuters tonight:

            “For the International Monetary Fund, five years of playing junior partner in European bailouts for Greece has been a “never again” experience, and the worst may be yet to come.

            The global lender has lent far more to Athens than to any other borrower, contributing nearly one-third of the total 240 billion euros, with the rest coming from euro zone governments and the bloc’s rescue fund.

            But it has sat uncomfortably in the side-car of the Greek rescue. Called in by EU paymaster Germany to try to keep the European institutions and the Greeks honest, the Washington-based IMF has never had control of the program.”

        2. Jive Bunny says:

          … and I’m not sure how “mistaken they were on later advising greater expenditure as the “growth” we have of 2.8% for 2014 would be 1.8% if the accurate RPI deflator were used and that’s before we get into double counting of Research and Development and fantasy numbers in respect of contributions from drug dealing and prostitution, however, the last 2 fiddles will provide one off gains and we will see how the UK fares in 2016 when the effects of these artificial growth boosters have worked their way out of the system …..

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