By Dion Rabouin -
Negotiations continue in Brussels Sunday and a temporary Greek exit from the eurozone is reportedly very much in play. According to multiple media reports, a four-page proposal outlining a possible Greek “time-out†has been proposed and is now circulating at the meeting of European Union heads of state. The session was cobbled together after a meeting of eurozone finance ministers earlier in the day failed to yield a desired solution. The group notably included Greek Prime Minister Alexis Tsipras as well as German Prime Minister Angela Merkel and French President Francois Hollande.
Here’s the full 4pg eurogroup document on #Greece, inc “time-out”, total amt needed (€82-6bn) & reform proposals pic.twitter.com/sKUpbykcBX
— Ed Conway (@EdConwaySky) July 12, 2015
The group is hoping to patch together a plan to restart bailout negotiations with Greece, which has shuttered its banks and is on the brink of collapse. Finnish finance chief Alex Stubb said Greece has just 72 hours to agree to the demands of its creditors, the Guardian reported Sunday afternoon.
As he left the eurogroup meeting, the Guardian reports Stubb said eurogroup ministers were demanding far-reaching conditionality, on three counts.
Number one, it needs to implement laws by July 15. Number two, tough conditions on for instance labour reforms and pensions and VAT and taxes.
And then number three, quite tough measures also on for instance privatisation and privatisation funds.
Stubb added that the entire package must be approved by both the Greek government and the Greek parliament.
A meeting of the leaders of all 28 EU members states, which was scheduled for Sunday afternoon to deal with the fallout of a "Grexit" was canceled at the by European Council President Donald Tusk to give eurozone leaders a last chance to strike a deal
Tusk made the announcement on Twitter (NYSE:TWTR) Sunday, saying: "I have cancelled EUCO (the European Union summit) today," adding that a summit of 19 eurozone leaders will be held at 4 p.m. Brussels time (10 a.m. EDT) and "last until we conclude talks on Greece."
At negotiations Saturday, Germany's finance ministry introduced a paper demanding more extensive economic reforms from Greece, offering as an alternative a five-year "time-out" for Greece from the eurozone. The paper was reportedly discussed during the eurogroup meeting Sunday.
Politico Europe reporter Tara Palmeri posted on Twitter a list of 12 conditions Greece would have to meet in order to be receive a third bailout.
Here's the list of reforms in the #Eurogroup draft that Greek government has to pass by Wednesday to get bailout pic.twitter.com/nEF8OmDBiA
— Tara Palmeri (@tarapalmeri) July 12, 2015
The eurogroup finance ministers had earlier indicated the bailout proposal submitted Thursday would not be discussed until Greece showed it was willing to make changes to its pension system and value-added tax (VAT) rates, while strengthening the independence of its statistics office, according to a draft statement cited by Reuters.