LONDON — If investors were hoping for any sort of certainty about the future of Greece in the euro zone, it’s unclear whether they’ll have it by the time markets open on Monday morning.
On Sunday, a summit of all European Union heads was cancelled as euro zone finance ministers and leaders continued marathon talks on whether debt-laden Greece could be trusted with a third bailout.
Greek prime minister Alexis Tsipras had presented his European creditors with a package of proposals aimed at reducing the country’s debts and ensuring that his country remains in the euro zone. That package includes a lineup of pension cuts and tax hikes similar to those tabled by Greece’s creditors — which were rejected by Greek voters in a referendum one week ago.
Yet over the weekend it emerged that some members of the euro zone, namely Germany, don’t trust that Greece can enforce the new measures. It’s also possible that the country may leave the common currency temporarily before EU leaders agree on a third bailout.
According to the BBC, Greece may be asked to implement the debt-curbing laws by this Wednesday as well as introduce further “tough conditions on labor reform, VAT and taxes, and tough measures on privatization and privatization funds,” before negotiations can even begin on the third bailout.
“We have to make sure the pros outweigh the cons — for Greece’s future, for the entire euro zone and the principles of our collaboration,” said German Chancellor Angela Merkel, according to BBC reports.