Following an extrordinary Eurogroup meeting, eurozone finance ministers have refused to extend a bailout program for Greece ahead of a June 30 deadline.
Eurogroup chief Jeroen Dijsselbloem said that Greece’s bailout program “will expire on Tuesday night,” rejecting a Greek request for a one-month extension.
The Eurogroup is reconvening to discuss the “consequences” of a Grexit and “prepare for what’s needed to ensure the stability of eurozone remains at its highest level.”
“Given that situation, I think we might conclude that however regretful, the program will expire Tuesday night,” Dijsselbloem said.
More at Deutsche Welle
It’s a tricky situation. The EU wants Greece to impose further austerity measures going forward and to make a 1.6bn Euro loan payment by June 30th. The Tsipras government wants an extension so that it can submit the EU proposal to a referendum on July 5th. At stake is a further 7-8bn Euros in financial aid. The chances of Greeks voting for more austerity seem vanishingly small to me.