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EU preparing for ‘state of emergency’ after Greek talks collapse

Published: June 15, 2015
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Source: Reuters

Germany’s EU commissioner said on Monday it was time to prepare for a “state of emergency” after talks collapsed at the weekend to rescue Greece from default and ejection from the euro.

Prime Minister Alexis Tsipras ignored a litany of pleas from European leaders to act fast and instead blamed creditors for the collapse in aid-for-austerity talks, the biggest setback yet in long-running talks to secure more aid for Greece.

Athens now has just two weeks to find a way out of the impasse before it faces a 1.6 billion euro bill due to the International Monetary Fund, potentially leaving it out of cash, unable to borrow and cast out of the single currency.

While there was little sign of open panic in Athens as Greeks held out hope for a last-minute solution – a familiar theme over the past six years as Athens lurched from one crisis to the next – the latest impasse triggered a selloff in European and Asian shares and weighed on the euro.

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