Greece | Tsipras heads to Brussels to defend deal proposal 

A pedestrian passes a stencil graffiti mocking German Chancellor Angela Merkel in Athens, Tuesday, June 2

Greece’s prime minister was heading to high-level meetings in Brussels yesterday to try to persuade the country’s creditors to accept a proposal that might unlock much-delayed bailout loans and save the country from financial disaster.
With Greece running out of cash and debt repayments looming as soon as tomorrow, Alexis Tsipras was to meet yesterday evening with Jean-Claude Juncker, the head of the European Union’s executive Commission.
“I will go to … explain to him that today more than ever it is necessary for the (creditor) institutions and mainly for the political leadership of Europe to sign up to realism,” Tsipras said before leaving for Brussels.
“We need unity,” he said, speaking of Europe. “I am certain the political leadership of Europe will do what it must.”
Jeroen Dijsselbloem, the eurozone’s top financial official, was also heading to Brussels for the meeting, an official said.
A teleconference between Tispras, German Chancellor Angela Merkel and French President Francois Hollande, tentatively scheduled for yesterday, had been postponed until today, German finance ministry spokesman Martin Jaeger said.
The EU Commission dampened hopes of a breakthrough yesterday, with spokesman Margaritis Schinas saying “this is a first discussion, not a concluding one.”
Still, news of the meeting was enough to encourage investors in Greece, where the main stock index was up 4.2 percent yesterday in early afternoon trading.
Time is pressing. Greece needs the 7.2 billion euros (USD8.1 billion) in rescue loans from creditors if it is to meet its debt repayments this summer.
It owes 1.6 billion euros to the IMF this month alone. The first installment of just over 300 million euros is due tomorrow, with other installments due on June 12, 16 and 19. Although Greece insists it intends to repay its debts, including tomorrow’s, it is unclear how much longer it will be able to without outside help.
Without bailout funds, Greece could eventually default on its debts and crash out of the euro, pushing Europe and potentially the global economy into turmoil.
European officials have insisted this is not on the cards.
Spanish Economy Minister Luis de Guindos said he was “completely convinced” a deal would be struck.
Greece’s exit from the euro “is not on the table, let’s make that very clear,” he said in Paris.
One option Greece could choose is to bundle all of this month’s IMF debts into one due June 30, allowing more time for negotiations. While allowed under IMF regulations, the option is rarely used.
Tsipras says he submitted his proposal to creditors on Monday night, as the leaders of France, Germany, the European Central Bank, International Monetary Fund and European Commission met in Berlin to discuss the situation.
He gave no details of his proposal on what fiscal reforms Greece would make in return for its final bailout installment, but Greece’s creditors said much work remained to be done. Elena Becatoros, Athens, AP