The European Union is likely to decide today whether the Tsipras government has done enough to warrant further discussions on a third bailout deal, worth at least €53.5 billion ($59.2 billion), and rescue the country from bankruptcy.
The Greek plan under consideration, thrashed out within days of the referendum which rejected further austerity, contains tax reforms and pension cuts.
Eurozone finance ministers are due to resume talks in Brussels on Sunday after nine hours of talks ended yesterday without agreement. European leaders will meet later today at an emergency summit.
The Greek parliament backed the latest measures on Friday despite the fact that a similar plan proposed by the creditors was rejected by the Greek people in the referendum.
The economic reforms put forward to Greece’s creditors includes higher taxes on shipping companies, making VAT rates a standard 23 per cent, including restaurants and catering, phasing out the supplementary payment to the poorest retirees between 2016 and 2019, and €300m ($450 billion) worth of defence spending cuts by 2016.
The plan also proposes the privatisation of ports and scrapping 30 per cent tax break for the wealthiest islands.
European media has reported that German Finance Minister Wolfgang Schaeuble has drawn up plans for Greece to temporarily exit the eurozone if this weekend’s talks fail. There are also unconfirmed reports that Finland has refused to agree new bailout proposals.
EU President Donald Tusk said the EU leaders’ summit would be a “last chance” for Greece to secure a deal and avoid exiting the euro.
Sources: BBC. The Guardian