Greece and its membership in Europe's joint currency faced an uncertain future Monday, with the country under pressure to reach a bailout deal with creditors as soon as possible after Greeks resoundingly rejected the notion of more austerity in exchange for aid. With Greek banks running out of cash and facing the danger of collapse within days without new aid, the government in Athens is racing against the clock. In an effort to facilitate negotiations on a new aid program, Finance Minister Yanis Varoufakis, who had clashed with European officials in the bailout talks, announced his resignation Monday. But Greece and its creditors, who will meet again Tuesday to discuss how to keep the country in the euro, remain far apart on key issues, particularly the notion of debt relief. The negotiations are complicated for the European creditors by Prime Minister Alexis Tsipras' triumph in Sunday's referendum. More than 61 percent of Greeks backed his call to vote "no" to budget cuts the creditors had proposed in return for rescue loans the country needs -- even though those proposals were no longer on the table. The vote was painted by opposition parties and many European officials as one on whether Greece should remain in Europe's joint currency. In the aftermath, many officials softened their tone and said talks would resume, though Greece's chance of staying in the euro was looking increasingly shaky.
Home »
» Greece Looks to Reopen Bailout Talks as Euro Future in Doubt
Greece Looks to Reopen Bailout Talks as Euro Future in Doubt
Greece and its membership in Europe's joint currency faced an uncertain future Monday, with the country under pressure to reach a bailout deal with creditors as soon as possible after Greeks resoundingly rejected the notion of more austerity in exchange for aid. With Greek banks running out of cash and facing the danger of collapse within days without new aid, the government in Athens is racing against the clock. In an effort to facilitate negotiations on a new aid program, Finance Minister Yanis Varoufakis, who had clashed with European officials in the bailout talks, announced his resignation Monday. But Greece and its creditors, who will meet again Tuesday to discuss how to keep the country in the euro, remain far apart on key issues, particularly the notion of debt relief. The negotiations are complicated for the European creditors by Prime Minister Alexis Tsipras' triumph in Sunday's referendum. More than 61 percent of Greeks backed his call to vote "no" to budget cuts the creditors had proposed in return for rescue loans the country needs -- even though those proposals were no longer on the table. The vote was painted by opposition parties and many European officials as one on whether Greece should remain in Europe's joint currency. In the aftermath, many officials softened their tone and said talks would resume, though Greece's chance of staying in the euro was looking increasingly shaky.