Juncker Feels Deceived by Failure of Greece to Bailout Deal

Deceived was how Jean-Claude Juncker, head of EU Commission, described Athen’s failure to accede on a bailout deal with EU ministers. At a news briefing, Mr. Juncker expressed his frustration on the turn of events after every effort was made from the commission.

Juncker

REUTERS/YVES HERMAN

Currently in Brussels, Mr. Juncker said that in spite of the question posed, a ‘’No’ vote from Greeks signifies their direct refusal to Europe.

Although the debt negotiations failed over the weekend, Chancellor Angela Merkel of Germany is still open to discuss with Alexis Tsipras, her counterpart in Greece.

Following the bailout proposal referendum on July 6, Greek banks will open on the following day, July 7.

An official decree published in the official government gazette announced that ATM withdrawals will be limited to €60 per card per day during the period. Entitled ‘Bank Holiday break’, it details imposed measures on financial institutions from June 28 to July 6. The decree was signed by President Prokopis Pavlopoulos and Prime Minister Alexis Tsipras.

Due to the lack of liquidity brought by the refusal of the Eurogroup to extend the loan agreement with Greece last June 27, it became urgent to protect the financial system and economy of Greece.

Pension payments are not excluded from the limited bank transaction. It was also announced that electronically paid wages into bank accounts will not be a problem.

Internet banking transactions and card payments in shops will continue. Transfers abroad, however, will need the Ministry of Finance commission.

Athens assured tourists who are currently in Greece that foreign credit cards are not included in the ATM withdrawal restrictions.

To protect their banking system, radical measures were enforced against the effect of the negotiations with creditors and the risk of general panic.

The fear of investors that Greece is headed to be ousted in the euro zone affected European stocks, which were significantly lower today.

Simon Harries, Department of Finance Minister of State, stated that the Greeks walk off from the table at the most important time and they need to return into the room to negotiate.

“Ireland is willing to assist Greece in finding a solution, according to Minister Harries. If the Greeks refuse to connect, they cannot expect any solutions.

He further said that with an honest and mature dialogue, a solution can be achieved. He added that tremendous progress and significant concessions were achieved in the VAT reform area.

“Engaging with your creditors is the best way to discuss a debt situation,” Mr. Harris said.

 

 

 

 

 

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