Tsipras calls Merkel, Hollande, Juncker to present a proposal for a mutually beneficial agreement

Prime Minister Alexis Tsipras on Sunday had phone contact with German Chancellor Angela Merkel, French President Francois Hollande, and European Commission President Jean-Claude Juncker to present a proposal for a mutually beneficial agreement.

Tsipras told the top European officials that the Greek proposal will give a definite solution to the Greek debt problem.

According to Financial Times, François Hollande and Angela Merkel both telephoned Alexis Tsipras, the prime minister, to remind him he needed a “staff level” agreement with the European Commission, IMF and ECB ahead of the summit. They told him the summit was not for “negotiations” — which anyway would be all but impossible in a forum including all 19 eurozone members — and urged him to reach a deal with the institutions. EU officials and bankers have warned that the failure to reach a deal on Monday could lead to a Greek default on its debts and even force its exit from the Eurozone. If a deal is reached, the two leaders said the parties could then start discussing a third bailout at the summit.

The Greek prime minister also held a long cabinet meeting on Sunday in which they discussed the situation regarding the Greek problem and tomorrow’s crucial summit of Eurozone heads of state. He also briefed his ministers on the talks with the three European leaders.

German newspaper Frankfurter Allgemeine Zeitung (FAZ) claims that reliable sources said the European Commission is to offer Greece an extension to the current bailout program until September, offering a bridge deal of 6 billion euros in exchange for painful reforms. The deal will have to pass the Greek Parliament.

By mid-July, the parliaments of Eurozone member states, including Germany and the Netherlands, will approve or not if further aid to Greece can be granted. This way, 3.7 billion euros cane be disbursed immediately. Then additional funds from the European Financial Stability Fund can be given along with funds from the Hellenic Financial Stability Fund intended for the recapitalization of Greek banks.