Greece crisis: Country could face 'state of emergency' if a deal is not reached

Greece needs a bail-out package to meet debt repayments on June 31

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The Independent Online

Greece could face a 'state of emergency' on July 1 if it does not reach a deal with its creditors, according to Guenther Oettinger, Germany’s EU Commissioner.

"We should work out an emergency plan because Greece would fall into a state of emergency," Oettinger said. "I think that the Commission needs to work out a plan that could avert a worsening of the situation in the event that Greece leaves the euro zone, in the event of a bankruptcy."

Earlier on Monday, a Greek government spokesman denied talks to release further bail-out funds had come to a standstill. Suspicions were raised after a meeting between the Greek government and its creditors on Sunday ended after 45 minutes with no agreement.

On Monday the European Commission appeared eager to prove that they had not made unreasonable demands by laying out the gaps between their demands and Greece’s proposals.

Athen’s proposed pension cuts would provide less that 0.04 per cent of GDP, the EC said. It is lobbying for 1 per cent.

Athen’s proposed pension cuts would provide less that 0.04 per cent of GDP, the EC said. It is lobbying for 1 per cent.

The Greek proposals, which leaked online, included taxes on swimming pools and yacht, a tv advertisement tax, and a tax on videogaming. Athens maintained they would not increase the rates for basic goods such as medicine, energy and fresh food.

Meanwhile a minister of a poorer and newer member of the Eurozone has spoken out out against the Greek bailout.

Josef Kollar, the vice chairman of Slovakia’s finance committee, accused the Greek prime minister of "swindling the whole world".

"Alexis Tsipras is swindling the whole world and this cannot go on forever,” Kollar told European newspaper the EU Observer.

"Politics should not be limited to political correctness – it should be based on economic reality. And in reality, the drachma would be a rescue for Greece," he said.

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