The Grexit: What are they saying?

Is Greece going to exit the Eurozone; commit to a Grexit? It′s looking for more likely at the moment than it has at any point over the past five years. Here is what the main players – the Troika and Greece itself – are currently saying.

The European Commission

“In the interest of transparency and for the information of the Greek people, the European Commission is publishing the latest proposals agreed among the three institutions (European Commission, European Central Bank and International Monetary Fund), which take into account the proposals of the Greek authorities … as well as the talks at political and technical level throughout the week.

Discussions on this text were ongoing with the Greek authorities on Friday night in view of the Eurogroup of 27 June 2015. The understanding of all parties involved was that this Eurogroup meeting should achieve a comprehensive deal for Greece, one that would have included not just the measures to be jointly agreed, but would also have addressed future financing needs and the sustainability of the Greek debt. It also included support for a Commission-led package for a new start for jobs and growth in Greece, boosting recovery of and investment in the real economy, which was discussed and endorsed by the College of Commissioners on Wednesday 24 June 2015.

However, neither this latest version of the document, nor an outline of a comprehensive deal could be formally finalised and presented to the Eurogroup due to the unilateral decision of the Greek authorities to abandon the process on the evening of 26 June 2015.”

European Central Bank

“The Governing Council of the European Central Bank today welcomed the commitment by ministers from euro area Member States to take all necessary measures to further improve the resilience of euro area economies and to stand ready to take decisive steps to strengthen Economic and Monetary Union.

Following the decision by the Greek authorities to hold a referendum and the non-prolongation of the EU adjustment programme for Greece, the Governing Council declared it will work closely with the Bank of Greece to maintain financial stability.

Given the current circumstances, the Governing Council decided to maintain the ceiling to the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on Friday (26 June 2015).

The Governing Council stands ready to reconsider its decision.”

International Monetary Fund

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement on 28th June:

“The coming days will clearly be important. I welcome the statements of the Eurogroup and the European Central Bank to make full use of all available instruments to preserve the integrity and stability of the euro area. These statements underscore that the euro area today is in a strong position to respond to developments in a timely and effective manner, as needed.

“The IMF also will continue to carefully monitor developments in Greece and other countries in the vicinity and stands ready to provide assistance as needed.”

Greek Prime Minister Alexis Tsipras

“(The) Eurogroup decision to not approve the Greek government′s request for a few days′ extension of the program to give the Greek people a chance to decide by referendum on the institutions′ ultimatum constitutes an unprecedented challenge to European affairs, an action that seeks to bar the right of a sovereign people to exercise their democratic prerogative.

A high and sacred right: the expression of opinion.

The Eurogroup′s decision prompted the ECB to not increase liquidity to Greek banks, and forced the Bank of Greece to recommend that banks remain closed, as well as restrictive measures on withdrawals.

It is clear that the objective of the Eurogroup′s and ECB′s decisions is to attempt to blackmail the will of the Greek people and to hinder democratic processes, namely holding the referendum.

They will not succeed.

These decisions will only serve to bring about the very opposite result.

They will further strengthen the resolve of the Greek people to reject the unacceptable memorandum proposals and the institutions′ ultimatums.”

Stay tuned…

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