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Greek PM vows 'credible' reforms as deadline looms

08 July 2015 23:23 (UTC +04:00)

Baku-APA. Greek Prime Minister Alexis Tsipras vowed to present "credible" reform plans before a Thursday deadline set by exasperated European leaders, as Athens formally asked for a new bailout to avoid crashing out of the euro, APA reports quoting Reuters.

Leftist leader Tsipras was greeted by a mixture of boos and cheers as he addressed the European Parliament on Wednesday, defending his decision to hold a bailout referendum last Sunday that dismayed Europe.

"The Greek government will tomorrow file new concrete proposals, credible reforms, for a fair and viable solution," Tsipras told European lawmakers in Strasbourg, France during a heated debate.

Tsipras also appealed for unity on all sides after six months of deep rifts with eurozone colleagues over the Greek debt crisis, saying: "let us not allow it to become a divided Europe."

But EU President Donald Tusk warned that a special summit of EU leaders on Sunday was the final chance for a deal to avoid a "Grexit", an exit from the single currency that would have global repercussions.

"This is really and truly the final wake-up call for Greece and for us, our last chance," said Tusk, warning that failure "may lead to the bankruptcy of Greece" and cause geopolitical problems for Europe.

Greece's banks remain closed for a second week, amid a cash crisis which saw the country last month become the first developed economy to default on an International Monetary Fund loan payment.

Final deadline

Eurozone leaders lost patience at a crisis meeting in Brussels on Tuesday after Tsipras and his new Finance Minister Euclid Tsakalotos turned up without any concrete plans on paper.

They ordered Athens to file a complete reform plan by midnight (2200 GMT) on Thursday, with Tusk saying the "final deadline" for a deal would then be Sunday's summit of all 28 European Union leaders.

The Greek government promised Wednesday it would start pension and tax reforms next week, as demanded by creditors, in return for a three-year loan to drag its financial system back from the brink of collapse.

In a formal letter to the European Stability Mechanism, the lender of last resort set up during the eurozone debt crisis, Tsakalotos said Greece would "immediately implement a set of measures as early as the beginning of next week".