IMF, ECB heads unexpectedly join talks on Greece's debt crisis

PanARMENIAN.Net - The heads of the IMF and European Central Bank unexpectedly joined talks on Greece's debt crisis Monday, June 1, as the cash-strapped country battles with its creditors to unlock desperately-needed bailout funds, AFP reports.

The presence of International Monetary Fund chief Christine Lagarde and ECB president Mario Draghi underlined the high stakes as Greece stares at a Friday deadline to repay 300 million euros ($328 million) it owes to the IMF.

The late-night meeting in Berlin was also attended by German Chancellor Angela Merkel, French President Francois Hollande and European Commission head Jean-Claude Juncker.

The aim was to come up with "a final proposal" to present to Athens, according to German daily Die Welt.

But Merkel's office said after the meeting only that the quintet agreed to work together "intensely" in the coming days and would stay in "close contact".

In a column published by French newspaper Le Monde on Sunday, Greek Prime Minister Alexis Tsipras said his government has made concessions, including agreeing to implement a series of privatizations it had previously opposed. It has also agreed to reform its value-added tax system as well as the pension system.

Rather than imposing further austerity that has so far only served to drive Greece into a deeper recession, he said his government has also submitted proposals to raise revenues.

Tsipras warned that Europe was at a crossroads, and could choose between a strategy of greater integration or one of division.

Those seeking the second strategy are simply seeking to inflict harsh punishment and mandatory austerity, with "Greece being the first victim", he said.

"To some, this represents a golden opportunity to make an example out of Greece for other countries that might be thinking of not following this new line of discipline," he wrote.

"Which strategy will prevail? The one that calls for a Europe of solidarity, equality and democracy, or the one that calls for rupture and division?"