Greek government hopes for Chancellor Angela Merkel to intermediate and break the deadlock in negotiations with creditors.
Greek officials flew to Brussels after prime minister Tsipras signaled he would soften his stance and accept painful compromises in return for promises to alleviate the country’s staggering debt. The Greek negotiators, who included deputy prime minister Yiannis Dragasakis, state minister Nikos Pappas and alternate minister for international economic relations Euclid Tsakalotos returned to Greece on Sunday night after an attempt to reach deal with creditors collapsed during a 45-minute meeting, bringing Greece one step closer to a default.
All three members of the delegation will participate in intense and possibly multi-day government meetings in Athens as Greece needs to secure a deal with its creditors within days if it is to avoid defaulting on a 1.6 billion euro payment to the IMF at the end of the month.
Sources close to the talks say that the Prime minister is in contact with a number of European officials maintaining talks at a political level.
An extraordinary meeting between PM Tsipras, Deputy PM Dragasakis, Finance Minister Varoufakis and Interior Minister Voutsis is planed to begin Monday afternoon.
A government official who spoke to iefimerida.gr on condition of anonymity said that “the government will not sign any agreement including further cuts to pensions and salaries, if that happens the game is lost for Syriza”.
“Things are crystal clear” Varoufakis said during an interview with Sto Kokkino radio station. “We could not reach a deal even if the Greek government was willing to compromise as the creditors rejected any further discussions on dept restructuring. The German Chancellor is now called upon to make decisions” he added.
Meanwhile government sources stressed that the Greek proposal submitted during the weekend was the final one and that its not in the government's intention to impose new austerity measures to the Greek people which has been already pauperized by five years of biting austerity. The same sources also reaffirmed that there is no common ground between the Greek government and the IMF.
Earlier today French president Francois Hollande warned reporters on the sidelines of the Paris Air Show that Europe will suffer turbulence if Greece and her creditors fail to reach a deal.