EU should brace for 'Grexit' unless Athens abandons 'state of denial', says German MP
The Eurozone should brace itself for a ‘Grexit’ if Athens fails to present a convincing economic proposal, a senior member of German Chancellor Angela Merkel's Christian Democrat (CDU) party said.
Michael Grosse-Broemer, the CDU's deputy floor leader in parliament said it was time for Athens to abandon its “state of denial” and take a resolute step towards meeting the demands of its international creditors.
"I'm not so sure anymore if the Greek government is really interested in averting damage for the people of Greece," Grosse-Broemer said.
"In the event a solid reform package is not presented, then a 'Grexit' would have to be accepted if necessary."
Meanwhile, Greek Prime Minister Alexis Tsipras said his government was aiming to secure a long-term deal that would end his country’s financial crisis.
"It is crucial that we strike a viable deal," he said.
"It is crucial to end this vicious cycle and to not be forced to go to a deal which, in six months' time, will bring us back to the same point."
However, Tsipras admitted Greece and the International Monetary Fund remained far apart and accused the organisation of being too strict in its demands.
"The big contradiction is the IMF's presence, which wants measures and a restructuring, while the others want measures but no restructuring,” he said.
“They want an a-la-carte IMF."
Analysts suggested that, unless the European Union relax its stance on Greece, Athens could fail to meet the deadline of IMF’s payment at the end of the month, although EU officials were not considering the prospect of a ‘Grexit’.
“It is in nobody’s interests for Greece to leave the Eurozone and irrespective of what happens in the coming days there doesn’t appear to be any mechanism in place that would allow for Greece to be pushed out,” said Michael Hewson, chief market analyst at CMC Markets UK.