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                 Greece Gets New Deadline for Reform Proposals

   by VOA News

   European leaders have given debt-strapped Greece an end of the week
   "final deadline" to reach a bailout agreement with its international
   creditors.

   Following an emergency meeting Tuesday, eurozone leaders said they were
   unimpressed with the latest reform proposals by Greek Prime Minister
   Alexis Tsipras.

   "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
   European Council President Donald Tusk.

   Failure to reach a deal "may lead to the bankruptcy of Greece and the
   insolvency of its banking system," warned Tusk at a news conference.

   European Union Economics Affairs Commissioner Pierre Moscovici was more
   positive, saying he believes a deal can be reached by Sunday, when all
   28 members of the EU will meet to discuss the crisis.

   "The ball is clearly in the Greek authorities' camp," Moscovici told
   France 2 TV on Wednesday.

   In a sign of just how dire the situation has become, European leaders
   have begun making preparations for Greece to leave the 19-nation
   eurozone.

   "The commission is prepared for everything. We have a Grexit scenario,
   prepared in detail," said European Commission President Jean-Claude
   Juncker.

   Greece's international lenders have become increasingly frustrated at
   Prime Minister Tsipras, who failed Tuesday to even present a written
   proposal for a new rescue plan.

   Following the meeting, Tsipras promised "swift" and "speedy" action on
   the latest deadline.

   The White House says President Barack Obama spoke to Tsipras by
   telephone Tuesday. He repeated his belief that it is in everyone's
   interest for Greece and its creditors to reach a mutually-acceptable
   deal.

   Greece defaulted on its $1.8 billion loan payment to the International
   Monetary Fund last week when European finance ministers refused to
   extend its bailout that would have allowed Greece to pay the IMF.

   Greece says it has suffered enough with spending cuts, tax hikes, and
   other tough conditions that the EU has imposed in exchange for a
   bailout.

   Greek voters rejected more austerity in a referendum earlier this week.
   While some Greeks say it is essential for the country to remain a part
   of Europe economically, "no" voters accused the EU creditors of
   humiliating and enslaving them.

   Meanwhile, many Greek banks are closed and withdrawals at cash machines
   are limited to just $67 a day. Store shelves are rapidly emptying and
   gas stations drying up with no one knowing exactly what is going to
   happen next.

   If Greece and the EU cannot come to terms, Greece could be forced out
   of the eurozone and return to its old currency, the drachma -- money
   that some outside Greece could refuse to accept.

   Greece's economic troubles began in earnest in 2009 when it was
   revealed that the old conservative government badly underreported the
   country's debt. The revelations came during the same time the global
   recession began to worsen.

   Greece was forced to turn to European and international leaders for a
   bailout to prevent bankruptcy.
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   [1]http://www.voanews.com/content/greece-gets-new-deadline-for-reform-p
   roposals/2853136.html

References

   1. http://www.voanews.com/content/greece-gets-new-deadline-for-reform-proposals/2853136.html