The heads of the 19 eurozone countries will hold an emergency summit on the crisis in Brussels on Monday under pressure to prevent Greece from defaulting on its debt with a June 30 payment deadline fast approaching.
Athens announced a frenzied round of meetings ahead of the summit, with Tsipras also scheduled to meet the leaders of its IMF, EU and ECB creditors on Monday before the summit.
Before having a meeting with The President of the European Commission, Jean-Claude Juncker, Alexis Tsipras made a brief statement to reporters:
“This is time for a substantial and viable solution that will allow Greece to come back to growth within the eurozone, with social justice and cohesion” the Greek PM said.
Juncker was far more cautious, saying that even if progress was made he was not sure if there will be a deal today.
The two are expected to be joined later by IMF Managing Director Christine Lagarde and ECB board member Benoit Coeure, who will then be replaced by the president of the ECB, Mario Draghi.
Jeroen Dijsselbloem, head of the eurozone finance ministers' eurogroup panel, will also attend the meeting.
MOSCOVICI: A DEAL IS POSSIBLE
Reuters reports that Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, believes a deal on Greece's bailout is possible at Monday's emergency summit.
Speaking on Europe 1 radio, Moscovici said today is a “decisive, vital” day for Greece, adding:
We’ll be having meetings with Tsipras which, I hope and I am convinced, will allow us to reach an agreement this evening” Moscovici said.
“We are moving in the right direction, we have solid ground for a deal, we just have to consolidate that today ... I think that the political will of everyone to preserve the euro, this common good, to ensure that this single currency is irreversible, will win the day” the commissioner added.
THE GREEK PROPOSALS
Greek Prime Minister Alexis Tsipras made a new offer on a reforms package to foreign creditors on Sunday, for a "mutually beneficial agreement," that would "not just postpone tackling the problem"according to a statement released by the Greek government.
The new plan includes:
[1] Elimination of early retirement options as of next year (that can produce savings of 200 million euros). The Greek proposal offers gradually to raise the Greek retirement age to 67 and to streamline various exceptions to the system.
[2] An increase on tax surcharges that middle- and high-income earners pay.
[3] A levy on companies with annual net income of more than 500,000 euros.
[4] Deep cuts in defense spending (that can produce savings of 150-180 million euros).
[5] The main rate of the Value Added Tax (VAT) is set at 23%, with a reduced rate of 13% reserved for energy and basic foods and an exceptional rate of 6% only for medicine and books. VAT revenue would be raised by changing which goods are charged the high 23% rate.
[6] An increased solidarity levy on top of the personal income tax is expected to bring in 220 million this year and 250 million next year, primarily by increasing the surcharge rate for incomes above 30,000 euros.
[7] an increase of 4% to 5% of the health care contribution levy on primary as well as supplementary pensions. In this way primary pensions will be reduced by 1% and supplementary pensions by 5% raising a projected 720 million euros per year.
GREEK PROPOSAL: 'GOOD BASIS FOR PROGRESS'
Greece's proposals were submitted to the institutions involved in the country's bailout negotiations - the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) - after a frenzy of telephone diplomacy between Athens and its creditors.
Martin Selmayr, head of cabinet to commission President Jean-Claude Juncker, wrote on Twitter that the Athens proposal offered "a good basis for progress".
Selmayr, who is German, added: "In German, 'eine Zangengeburt'" - meaning a "forceps delivery". He gave no details. Officials from the EU and Greece's other creditors have been working for four months to overcome differences and release funds to Athens, fearing it will run out of cash this month.