Greece submits reform plans to Eurozone

Greece put forward its plan late on Thursday, only two hours before its midnight deadline.


The head of the 19-member Eurozone group of finance ministers, Jeroen Dijsselbloem confirmed having received the proposals.


The reform plan, which includes tax rises, pension reforms, privatization as well as spending cuts, will be studied during the weekend.


On Friday, the Greek parliament will vote on Mr. Tsipras' proposals after which it will be taken into consideration by Eurozone finance ministers on Saturday and by EU leaders at a summit in Brussels on Sunday.


Greek voters had rejected previous proposals from the country's lenders in a referendum on Sunday.


The BBC's Chris Morris in Brussels reported that though “reforms rejected in the referendum would now be conceded, this is no capitulation by Mr. Tsipras”.


Greece needs €53.5bn as part of a new bailout package to be able to restructure its huge debt burden.


According to European Council President Donald Tusk, creditors need to view Greece's reform plans with a "realistic proposal on debt sustainability".


Although Donald Tusk's comments could be taken positively with the aim of reducing Greece's debt burden, the German Chancellor Angela Merkel was against "the classic haircut".


Greek banks have been closed for nearly a fortnight with limits on cash withdrawals.


Undoubtedly, to avoid a default and a possible euro exit, Greece needs a third bailout.

Source: BBC News

Priscilla Camryn By: Priscilla Camryn
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