- Jean-Claude Juncker, European Commission President
The Greek government sent a formal request for a new bailout to the European Stability Mechanism, asking for a three-year loan facility. In return, it pledged to implement reforms to taxes and pensions starting next week and to honour all its financial obligations. Yet, Athens has to follow the request up with a detailed plan by Thursday on how the government plans to reform its economy if it is to receive fresh bailout cash to prevent bankruptcy and a possible exit from the Euro zone. The scheduled finance ministers' teleconference on Wednesday was cancelled, but the request would be dealt with by the Eurogroup Working Group, comprising senior officials.
Meanwhile, European leaders have prepared a Grexit scenario, said European Commission President Jean-Claude Juncker. However, the path to a Euro exit by Greece remains uncertain. European law treats the Euro as "irrevocable" and makes no provision for a member state to leave or be pushed out. The possible exit mechanism would mean European governments halt aid to Greece, leading the ECB to stop supplying cash to Greece's banks. The governing council member Christian Noyer said the ECB will end its support for Greece if "there is no political accord in sight".
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