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Greece debt crisis: France 'will do everything' to keep Greece in eurozone | |
(about 2 hours later) | |
France will do all it can to keep Greece in the eurozone, because allowing it to leave would be too risky, Prime Minister Manuel Valls has said. | |
"The basis for a deal exists," he said ahead of an emergency eurozone summit. | |
However, Germany has warned against any unconditional debt write-off. | |
Eurozone ministers have called on Greece to put forward fresh proposals after Greek voters rejected the latest draft bailout deal in a referendum. | |
Greek Prime Minister Alexis Tsipras met Greek political party leaders on Monday and headed to Brussels on Tuesday morning, where he is expected to present new proposals. | |
Follow the latest updates | Follow the latest updates |
His plan is said to include a demand for Greece's vast €323bn ($356bn; £228bn) debt to be cut by up to 30%. | |
Greece's teetering banks are to stay closed on Tuesday and Wednesday. | |
The European Central Bank (ECB) is maintaining its pressure on the banks, refusing to increase emergency lending and ordering them to provide more security for existing emergency loans. | |
New demands | |
Eurozone finance ministers will meet in Brussels later on Tuesday before a full summit of eurozone leaders. | Eurozone finance ministers will meet in Brussels later on Tuesday before a full summit of eurozone leaders. |
Mr Tsipras met Greek political party leaders on Monday to agree a collective negotiating stance. According to Greek media, the demands include: | |
Mr Tsipras has cited a recent IMF report, tweeting last Friday: "Per the IMF, the only way #Greece's debt can be sustainable is with a 30% haircut & a 20 year grace period." | |
What are the scenarios for Greece? | What are the scenarios for Greece? |
What happens next? | What happens next? |
After their meeting, Greek political leaders released a joint statement insisting that the country should remain in the eurozone. | |
"The recent verdict of the Greek people is not a mandate for rupture, but a mandate to continue and strengthen the effort to reach a socially fair and economically viable deal," the statement said. | |
'Nothing is taboo' | |
In his comments on Tuesday, Mr Valls said the eurozone could not "take the risk of Greece leaving" - for economic as well as political reasons. | |
"There is no taboo subject when it comes to [Greek] debt," he told French radio. | |
France and Germany have urged Greece to come up with "precise" fresh proposals - but differ over how much they should compromise to find a deal. | |
Germany is taking a tougher line than France, say correspondents - warning against any unconditional write-off of Greece's debt, amid fears it would destroy the single currency. | |
"I really hope that the Greek government - if it wants to enter negotiations again - will accept that the other 18 member states of the euro can't just go along with an unconditional haircut [debt write-off]," said German Economy Minister Sigmar Gabriel. | |
That view is echoed by several other eurozone countries - some of which are owed significant sums of money by Greece. | |
Analysis: Chris Morris, BBC News, Athens | Analysis: Chris Morris, BBC News, Athens |
With pressure growing on the Greek banking system, the eurozone summit will have to give a pretty clear signal that it thinks progress can be made. | With pressure growing on the Greek banking system, the eurozone summit will have to give a pretty clear signal that it thinks progress can be made. |
But the two most important leaders in the eurozone, Angela Merkel and Francois Hollande, appear to be struggling to find a common position on Greece in the wake of Sunday's "No" vote. | But the two most important leaders in the eurozone, Angela Merkel and Francois Hollande, appear to be struggling to find a common position on Greece in the wake of Sunday's "No" vote. |
Broadly speaking, some countries - led by France - are pushing for a deal that will give Greece some breathing space to stay in the eurozone. | Broadly speaking, some countries - led by France - are pushing for a deal that will give Greece some breathing space to stay in the eurozone. |
Others - led by Germany - are under greater political pressure at home, and wonder whether such a deal is possible. | Others - led by Germany - are under greater political pressure at home, and wonder whether such a deal is possible. |
It all leaves Greece in the most precarious position it has experienced in five years of wrenching economic crisis. The best that can be said is that it could go either way. | It all leaves Greece in the most precarious position it has experienced in five years of wrenching economic crisis. The best that can be said is that it could go either way. |
Peston: ECB tightens squeeze on banks | Peston: ECB tightens squeeze on banks |
Pharmacies running low | Pharmacies running low |
What does Europe make of 'no' vote? | What does Europe make of 'no' vote? |
Meanwhile, the ECB said it would keep emergency cash support for Greek banks, which are running out of funds and on the verge of collapse, at the same frozen level - refusing requests for additional support. | |
It told the banks to lodge more collateral - or assets - with the Bank of Greece, reducing the amount of spare cash the banks have. | |
Capital controls have been imposed, with people unable to withdraw more than €60 a day from cash points. | |
Greece's last bailout expired last Tuesday and Greece missed a €1.6bn payment to the IMF. | Greece's last bailout expired last Tuesday and Greece missed a €1.6bn payment to the IMF. |
The European Commission - one of the "troika" of creditors along with the IMF and the ECB - wanted Athens to raise taxes and slash welfare spending to meet its debt obligations. | The European Commission - one of the "troika" of creditors along with the IMF and the ECB - wanted Athens to raise taxes and slash welfare spending to meet its debt obligations. |
Greece's Syriza-led left-wing government, which was elected in January on an anti-austerity platform, said creditors had tried to use fear to put pressure on Greeks. | Greece's Syriza-led left-wing government, which was elected in January on an anti-austerity platform, said creditors had tried to use fear to put pressure on Greeks. |