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| E.U. Urged to Plan for Greece to Default | E.U. Urged to Plan for Greece to Default |
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| BRUSSELS — A chorus of voices on Monday called on European Union authorities to plan for Greece to default on its huge pile of debt after talks between Athens and its creditors deteriorated over the weekend. | BRUSSELS — A chorus of voices on Monday called on European Union authorities to plan for Greece to default on its huge pile of debt after talks between Athens and its creditors deteriorated over the weekend. |
| Senior figures from Germany were among the most outspoken, with one warning of the need for a “state of emergency” to handle the potential fallout from a failure to reach a deal with the Greek government. Germany is one of Greece’s biggest creditors. | Senior figures from Germany were among the most outspoken, with one warning of the need for a “state of emergency” to handle the potential fallout from a failure to reach a deal with the Greek government. Germany is one of Greece’s biggest creditors. |
| The impasse exposed the wide gap between the two sides in advance of a meeting on Thursday of eurozone finance ministers, whose approval is required before any deal to end the long-running crisis can be put in place. The goal is to unlock billions of dollars in frozen aid payments from eurozone countries and Greece’s other creditors to keep the country from becoming the first to leave the 19-nation currency bloc. | |
| The increasingly acrimonious negotiations heightened anxiety that Greece would be forced to default on its mountain of debt, with 1.6 billion euros, or $1.8 billion, owed to the International Monetary Fund on June 30. | |
| Greece’s stock market fell sharply on Monday, opening 6.5 percent lower, as interest rates on European government bonds rose. European markets also slumped, with the Euro Stoxx 50 index 1.4 percent lower in midday trading in London. | Greece’s stock market fell sharply on Monday, opening 6.5 percent lower, as interest rates on European government bonds rose. European markets also slumped, with the Euro Stoxx 50 index 1.4 percent lower in midday trading in London. |
| Weekend discussions between senior Greek government officials and representatives of creditor groups broke down on Sunday evening, as the two sides refused to soften their long-held bargaining positions. | |
| Prime Minister Alexis Tsipras of Greece had described the creditors’ plan as including “impossible targets,” a reference to austerity measures that he said he was elected to repudiate, including higher electricity taxes and pension cuts. His comments drew applause from lawmakers in Athens. | |
| But Gavriil Sakellaridis, a spokesman for the Greek government, said on Monday that for Athens, the “only plan, basic plan, is to reach a deal.” He added that “efforts will continue for a mutually beneficial agreement.” | |
| Mr. Sakellaridis repeated, however, that Greece would not cut pensions or raise the valued add tax on basic goods, steps that the creditors have insisted that Athens must take to unlock desperately needed bailout funds. Asked whether Greece would submit new ideas to creditors, he said the government has “to a great extent reached its limit on proposals.” | |
| The sense of urgency appeared greatest in Germany, where Jens Weidmann, the president of the Bundesbank, Germany’s central bank, warned of the increasing danger that Greece would have to declare bankruptcy. | The sense of urgency appeared greatest in Germany, where Jens Weidmann, the president of the Bundesbank, Germany’s central bank, warned of the increasing danger that Greece would have to declare bankruptcy. |
| “Time is running out. The likelihood that no solution can be found is growing day by day,” he told a symposium in Frankfurt on Monday. “There seems to be a lack of will to reach agreement,” he said. | “Time is running out. The likelihood that no solution can be found is growing day by day,” he told a symposium in Frankfurt on Monday. “There seems to be a lack of will to reach agreement,” he said. |
| “The ball is quite clearly in the Greek government’s court,” added Mr. Weidmann, who argued for something more than a stopgap solution so that “Greece can stand on its own two legs” without continually turning to partners for help. | “The ball is quite clearly in the Greek government’s court,” added Mr. Weidmann, who argued for something more than a stopgap solution so that “Greece can stand on its own two legs” without continually turning to partners for help. |
| Günter Oettinger, the European commissioner for digital affairs who is close to Chancellor Angela Merkel of Germany, called on the European Commission to make plans for a “state of emergency” in Greece from July 1. The commission is one of three institutions, along with the International Monetary Fund and European Central Bank, that oversee Greece’s compliance with the terms of its loans. | |
| Mr. Oettinger was among several leaders of Ms. Merkel’s Christian Democrats who met for a regular party leadership session on Monday at which Greece was the foremost topic. | Mr. Oettinger was among several leaders of Ms. Merkel’s Christian Democrats who met for a regular party leadership session on Monday at which Greece was the foremost topic. |
| There were also cautionary words for Greece from Sigmar Gabriel, the leader of the center-left Social Democrats who are Ms. Merkel’s partners in government. | There were also cautionary words for Greece from Sigmar Gabriel, the leader of the center-left Social Democrats who are Ms. Merkel’s partners in government. |
| In what amounted to the strongest warning yet from his party to the leftist government in Athens, Mr. Gabriel told Bild, Germany’s top-selling newspaper, that, “We want to help Greece and keep them in the euro” but “it is not only time that is running out, but everywhere in Europe the patience.” | In what amounted to the strongest warning yet from his party to the leftist government in Athens, Mr. Gabriel told Bild, Germany’s top-selling newspaper, that, “We want to help Greece and keep them in the euro” but “it is not only time that is running out, but everywhere in Europe the patience.” |
| Mr. Gabriel added that, “Everywhere in Europe the mood is growing: ‘Enough!’ ” | Mr. Gabriel added that, “Everywhere in Europe the mood is growing: ‘Enough!’ ” |
| Mr. Gabriel also expressed sympathy for ordinary Greeks, “who so urgently need this help from Europe.” But, he emphasized: “Europe and Germany will not be blackmailed. And we will not let German workers and their families pay for the exaggerated election promises of a partly Communist government.” | Mr. Gabriel also expressed sympathy for ordinary Greeks, “who so urgently need this help from Europe.” But, he emphasized: “Europe and Germany will not be blackmailed. And we will not let German workers and their families pay for the exaggerated election promises of a partly Communist government.” |
| The Athens government sought to underline that the debt crisis was as much a problem for Europe as for the Greek people — and indicated that it was prepared to bet that its creditors would blink first. | The Athens government sought to underline that the debt crisis was as much a problem for Europe as for the Greek people — and indicated that it was prepared to bet that its creditors would blink first. |
| “We will patiently wait for the institutions to adhere to realism,” said Mr. Tsipras, who was referring to Greece’s creditors — the International Monetary Fund, the European Central Bank and the other eurozone countries. | |
| “Those who perceive our sincere wish for a solution and our attempts to bridge the differences as a sign of weakness, should consider the following: We are not simply shouldering a history laden with struggles,” Mr. Tsipras said. “We are shouldering the dignity of our people, as well as the hopes of the people of Europe.” | |
| Greek newspapers criticized European creditors for making too many demands that risked unleashing economic chaos, but some also suggested that the Athens government was mismanaging the latest chapter of the Greek debt drama. | Greek newspapers criticized European creditors for making too many demands that risked unleashing economic chaos, but some also suggested that the Athens government was mismanaging the latest chapter of the Greek debt drama. |
| “A scenario of rupture, the road opens to default,” the right-wing Eleftheros Typos said. | “A scenario of rupture, the road opens to default,” the right-wing Eleftheros Typos said. |
| “Callous creditors, awkward government,” the center-left Ta Nea said. | “Callous creditors, awkward government,” the center-left Ta Nea said. |
| The European Commission said at a daily briefing in Brussels on Monday that there were no scheduled meetings between Greece and its creditors before the Eurogroup meeting of finance ministers on Thursday in Luxembourg. But the president of the commission, Jean-Claude Juncker, was expected to meet with Mario Draghi, the head of the European Central Bank, to discuss the failed talks. |