Proposals

Greece was told to stop fighting creditors demands and sign a deal to avert a default. European Union President Donald Tusk rebuked Prime Minister Alexis Tsipras for stalling in reaching a debt agreement, whereas the International Monetary Fund walked out of talks showing that diplomatic niceties have evaporated.

Greece's central bank head urged the country's government to keep the country in the euro on Tuesday and not waste the "huge sacrifices" its population has made in recent years.

Yannis Stournaras said an agreement between Athens and its creditors from the eurozone and International Monetary Fund to keep the country afloat was "not far away."

The head of Greece's central bank governor and ECB policymaker Yannis Stournaras said on Tuesday that he was "very optimistic" that the country would stay in the euro.

"Nobody has a mandate to take the country out of the euro... so I am very optimistic that a Grexit will not occur," Stournaras said during a panel discussion at an event organized by think-tank Chatham House.

Greek manufacturing activity shrank for the ninth straight month in May, with declining export orders and production leading firms to cut jobs, a survey showed on Tuesday.

US FinMin Lew, attends the Dresden G7 Summit, and stated that the 5th of June may not be a crucial deadline for Greece. At the same time, however, he asked a solution to the Greek crisis “as soon as possible”.

The German newspaper Tageszeitung on Thursday headlined an article reading: “Eight days until Greek bankruptcy, the countdown has begun, this time for real”.

“Brussels in the Greek fever once more. Bankruptcy forewarned for weeks (…) did not come over Easter or Pentecost, all eyes are now on June 5th”.

By Jurgen Matthes*

Major international tour operators are reportedly demanding that Greek resorts and hotels sign “default clauses” in contracts for the looming holiday season, with expanded guarantees to deal with possible “Grexit” or even hikes in VAT rates.

German Economy Minister Sigmar Gabriel warned the Greek government that Greece could only get further funds if it carried out reforms in a German newspaper interview published on May 17.

European Parliament President Martin Shulz told German newspaper Frankfurter Allgemeine that the EU is willing to continue financially assisting Greece but only if Athens seizes the opportunity.