Clock ticks as Greece’s future in euro hangs by a thread

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European Council on Flickr

THE clock is ticking on a 48-hour deadline for Greece, as Eurozone leaders agreed on Tuesday night (July 7) that the country must present new austerity measures before agreement can be reached on a bailout for their collapsing banks.

Greece has until Thursday evening to present their plans to the euro countries’ leaders and representatives of their international creditors, who will then decide whether they can accept the programme, to stave off Greece’s complete financial meltdown and its exit from the Eurozone.

Greece is also likely on Wednesday to submit an application for funding from the European Stability Mechanism, the fund reserved by the Eurozone for bailouts.

If the proposals are acceptable to that meeting on Thursday, negotiations proceed on the renegotiation of Greece’s debt and measures to save its banks. If they are not agreed to, all EU leaders, including those such as the UK’s David Cameron, will meet on Sunday to address what will likely be Greece’s exit from the euro. They may also have to consider a humanitarian crisis resulting from cutting Greece off from further financial assistance.

It has been reported that the US has intervened, Barack Obama petitioning Germany’s Angela Merkel to ensure a deal is done. Donald Tusk, the president of the European council, said that this was “the most critical moment” in the euro’s history.

Meanwhile, Greek Prime Minister Alexis Tsipras, who was told by Sunday’s referendum that Greek people would not accept unlimited austerity to keep their place in the euro, said that the solution must be a “socially just and economically viable agreement.”

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