Negotiations over Greece's bailout turned ugly on Tuesday, with mutual accusations as Athens hardened its rhetoric against its creditors.
"Creditors want to humiliate the Greek people," Greek Prime Minister Alexis Tsipras told lawmakers in his leftist Syriza party.
“The time has come for the IMF’s proposals to be judged not just by us but especially by Europe,” he said. “Right now, what dominates is the IMF’s harsh views on tough measures, and Europe’s on denying any discussion over debt viability. The fixation on cuts ... is most likely part of a political plan ... to humiliate an entire people that has suffered in the past five years through no fault of its own.”
His comments came shortly before a euro zone ministers meeting on Athens' debt deal, prompting the United States to press for an agreement before the crisis became even more severe.
At a news briefing in Brussels, European Commission President, Jean-Claude Juncker, effectively accused the 40-year-old Tsipras of misleading voters.
"I don't care about the Greek government…I do care about the Greek people, mainly the poorest part," Juncker said.
"I'm not in favor, and the prime minister knows that, ... of increasing VAT on medicaments and electricity," he said. "This would be a major mistake."
"The debate in Greece and outside Greece would be easier if the Greek government would tell exactly what the commission is really proposing," the Commission chief added.
He said the Commission had instead proposed a 35-billion-euro program to support investments in Greece and floated the idea of a "modest cut in the Greek defense budget," which constitutes two percent of the country's gross domestic product.
Responding to the EU commission chief’s fury, the Greek government released a statement attempting to douse tensions.
“We never said it was the view of the Commission, or of Mr Juncker personally ... [We laid the blame] with the entire proposal made by the three institutions.” government spokesman Gabriel Sakellaridis said in a statement..
European Parliament President Martin Schulz urged Greece in a newspaper interview to accept a proposal by its international lenders for a cash-for-reforms deal, warning Athens that failing to reach an agreement would destabilize Europe.
Washington's Treasury Secretary Jacob Lew told Tsipras over a phone call that his country needed to make "a serious move to reach a pragmatic compromise with its creditors."
Failing to agree "would create immediate hardship for Greece and broad uncertainties for Europe and the global economy," Lew said.
Tuesday's developments suggested the Greek delegation led by Finance Minister Yanis Varoufakis will have a hard time negotiating at the euro zone finance ministers meeting in Luxembourg on Thursday.