European creditors have warned Greece that it can expect no further help and that it will crash out of the euro unless it accepts the bailout deal.
The Times reports that Germany said the only aid it will now offer the beleaguered country is humanitarian, while the Dutch Prime Minister said it must decide whether it wishes to remain in the euro.
Greek banks are now expected to run out of cash by Friday, but Prime Minister Alexis Tsipras is emboldened by Sunday’s referendum result that overwhelmingly rejected the bailout terms. He has demanded that creditors write off much of the country’s debt and will hope to exploit growing divisions between France and Germany – the Eurozone’s two most powerful members.
Merkel is backed by Austria, Finland, Ireland, the Netherlands, Portugal, Spain and various Eastern European nations, who want no further bailouts for Greece.
Dutch Prime Minister Mark Rutte said: “They must make a decision, this evening or tonight, what they are going to do. Whether they are going to come with a serious plan… or not.”
France disagrees with this hard line, however, with President Hollande saying: “Europe is not just an economic, financial and monetary construction, Europe is a whole set of principles and values. A conception of the world.”
But German Vice-Chancellor Sigmar Gabriel demanded that Tsipras drop opposition to VAT hikes and pension cuts: “If Greece wants to stay in the euro, the Greek government must quickly make a substantive offer that goes beyond its willingness thus far.
“For the Greek population, life will get even more difficult. The definitive insolvency of the country now is an imminent threat.”
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