BRUSSELS, Kingdom of Belgium. Eurozone finance ministers have suspended “inconclusive” talks on Greece’s latest reform proposals, aimed at a crucial third bailout.
The Eurogroup of finance ministers will meet again later today, just hours before a “decisive” summit of all 28 European leaders.
The measures, which won the backing of the Greek parliament late on Friday, are aimed at securing billions in financial support to prevent the country potentially crashing out of the Eurozone.
The head of the Eurogroup, Jeroen Dijsselbloem, described the talks as “very difficult,” but said finance ministers were still working towards an agreement.
“We have had an in-depth discussion of the Greek proposals, the issue of credibility and trust was discussed and also of course financial issues involved, but we haven’t concluded our discussions,” he told reporters.
“It is still very difficult, but work is still in progress,” he added.
Maltese Prime Minister Joseph Muscat, who is due to attend today’s summit in Brussels, tweeted: “Briefed about inconclusive Eurogroup meeting. It will be a long day.”
Ministers have given no concrete details about the nine-hour meeting, but sources close to the talks suggest divisions over whether Athens has gone far enough with its proposed austerity measures.
The proposals, which will serve as the foundation for Sunday’s negotiations, include tax hikes and pension reforms similar to those rejected by the Greek people in last week’s referendum.
Greece’s biggest creditor, Germany, has long led the drive for tougher austerity measures from Athens.
In a document which came to light during the meeting, the German finance ministry once again demanded more concrete commitments.
Failing that, it said Greece should take a five-year “time-out” from the eurozone during which some of its debt would be written off.
However several officials said no one had explicitly raised the possibility of a Grexit in the meeting.
Belgium, Finland, Slovakia and Slovenia are reported to be among those also taking a tough line in the talks. According to Finland’s state broadcaster YLE, the Finnish government had said it does not consider the Greek proposal sufficient to start negotiations on a new loan.
Sky News’ Economics Editor Ed Conway, who is in Brussels, said a fundamental lack of trust in Greece after years of broken promises has also proved to be another major sticking point in negotiations.
Ahead of Saturday’s meeting, German finance minister Wolfgang Schaeuble said negotiations would be “exceptionally difficult”.
Emerging optimism about Greece had been “destroyed in an incredible way in the last few months” since Greek Prime Minister Alexis Tsipras won power, he said.
Meanwhile, Mr Dijsselbloem, warned: “There is a major issue of trust.
“Can the Greek government be trusted to do what they are promising in coming weeks, months and years?”
Greece has had two bailouts worth €240bn (£172.5bn) from the Eurozone and the IMF since 2010, but its economy has shrunk by a quarter, unemployment stands at more than 25% and one in two young people is out of work.
Credit: Sky News
