As debt negotiations founder, Greece moves closer to default

Greece and its creditors hardened their stances Monday after the collapse of talks aimed at preventing a default and possible euro exit, prompting Germany's EU commissioner to say the time had come to prepare for a "state of emergency."

Prime Minister Alexis Tsipras ignored pleas from European leaders to act fast. Instead he blamed creditors for Sunday's breakdown of the cash-for-reform talks, the biggest setback in long-running negotiations to unlock aid. He said his government had a responsibility to defend Greece's dignity and would resist demands for further pension cuts.

"It is not a matter of ideological stubbornness. It has to do with democracy," said the prime minister who was elected on a pledge to end austerity.

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


http://america.aljazeera.com/articles/2015/6/15/debt-negotiations-founder-greece-holds-steadfast.html