— The European Union is having a hard time holding together its latest attempt to resolve the debt crisis, with the two sides in talks for a deal to save the euro and revive a faltering economy facing an economic crisis that has left its leaders fuming.
The euro zone’s leaders, meanwhile, are struggling to come to terms with the fact that Greece is on the verge of losing the currency and a deal could see it lose access to European bailouts.
Greece’s prime minister has said the country’s creditors have no confidence in his ability to keep its country afloat, and he has demanded the European Central Bank halt emergency lending to help Athens stay afloat.
“They’ve been saying for some time that they would only accept our proposal, but now they have to come up with something.
This is very painful,” Prime Minister Alexis Tsipras said Monday after meeting European Union chief Jose Manuel Barroso in Brussels.
Barroso rejected the proposal on Monday and said Greece would take a further step of defaulting on a loan it is due to receive from the European Union.
After meeting Barrosi, Tsipra made his first public remarks since he and other EU leaders met Tuesday in Brussels to discuss the crisis.
In an apparent attempt to reassure the public, Tsipsar said the deal agreed between the two parties could be used as a basis for the Greek government to be able to meet the requirements of the European bailout funds.
He also reiterated his vow to hold a referendum on the bailout in 2018, saying it was his priority to keep Greece in the eurozone and remain part of the union.
But even though Tsiprassias demands are acceptable, the economic damage of the crisis and the continued lack of trust in his leadership means that he could lose a crucial negotiating partner in the EU.
EU officials say there is no other alternative to a deal.
Talks with Athens resumed Monday after a break after months of talks that have so far focused on ways to keep the Greek economy afloat and to stem the spiraling inflation.
While the negotiations have been going on, a series of problems have been brewing in the country, including the continuing shutdown of the banks and a political impasse.
Despite these, Barroosi told the German daily Die Welt that the two leaders agreed to continue the talks.
“I am very pleased that they are going to continue,” Barroos said.
Tsipras and Barrobas, both former European Commission presidents, have been negotiating for months.
During the talks, they agreed to seek a compromise with the Greek and Italian leaders in order to get the Greek-led government to agree to reforms that would ease the countrys austerity measures and revive the economy.
The two sides have been discussing these reforms for months, and it was Barrosov who first proposed them last month.
Barrosov’s proposal included a plan for Greece to pay down its public debt, as well as for the European Investment Bank to guarantee the country with its funds.
This would allow the European Commission to offer Greece aid and help with the government’s debt service.
At the same time, Barrosso’s proposal also called for the EU to ease the conditions on Greece’s bailout, and for the IMF to ease its aid.
Meanwhile, TsIPras, who is also the country s leader, has been demanding an agreement to prevent Greece from losing access to the bailout funds, and has also demanded a reduction in the debt of the country.
Barroses proposal is not binding, and is also subject to a referendum vote.
As the talks continue, Tsias demands appear to have gained some ground.
German Chancellor Angela Merkel is calling on the Greek parliament to reject Barrosbos proposal, saying that it is not in the interests of the Greek people to be in a debt crisis and that it would be unfair to demand a debt reduction without conditions.
Barrossov said that the Greek Parliament should reject the proposal because it was not acceptable to the Greek citizens and that he will be able raise the issue in a referendum.
When asked about the referendum question, Barrodas said that it could be answered either way.
“The referendum is up to the Greeks,” Barrossov told reporters.
“The only way for the Greeks to have the right to choose is to vote yes.”
In addition, the two European leaders agreed on Monday to resume negotiations on the future of the Eurozone, which includes Greece, Portugal and Ireland.
They are expected to conclude a deal in the coming weeks.
Both Barrosols and Tsipranis spokesmen said that there was no need to rush to a conclusion, and that the talks would continue in a way that would be acceptable to both sides.