The Greek government has been given a “final deadline” until the end of the week to present a proposal of reforms, ahead of a meeting of all 28 EU leaders in Brussels on Sunday (12 July). But in a sign of the general pessimism following Tuesday’s meeting of euro leaders, the European Commission said it already has plans for how to deal with a Greek exit from the eurozone.
Meanwhile, German chancellor Angela Merkel ruled out any debt haircut for Greece. “Tonight many around the table, also myself, said a haircut will not happen. That is a bailout essentially within the eurozone and that is banned”, she said.
“The stark reality is that we have only five days left to find the ultimate agreement. Until now, I have avoided talking about deadlines. But tonight I have to say loud and clear that the final deadline ends this week”, said Tusk. (euobserver)