Reuters - Video

Edition: US | UK | IN | CN | JP

video Finance Videos

Euro zone scrambles to keep Greece in

Monday, July 06, 2015 - 02:13

Eurogroup chairman Jeroen Dijsselbloem admits Greece's 'No' vote has made discussions with its creditors more difficult. But as Ivor Bennett reports, he still says the aim is to keep Greece in the euro zone.

▲ Hide Transcript

View Transcript

To all appearances, the dismantling has already begun. A routine refurbishment apparently nothing to do with the result of the Greek referendum. Even so, the awkward symbolism can't be ignored. Eurogroup Chairman Jeroen Dijsselbloem admitting he has a tough job keeping the currency together. (SOUNDBITE) (Dutch) EUROGROUP CHAIRMAN, JEROEN DIJSSELBLOEM, SAYING: "We will of course recognize the outcome, but this doesn't bring us closer to a solution. In fact, when proposals are rejected that only makes things more difficult." He did stress though that the aim is to keep Greece in the euro zone. A softer stance than there has been, with euro zone finance ministers due to meet on Tuesday. A tougher nut to crack will be Germany. After a week of barbs and accusations, sympathy there is in short supply. Exemplified by the Social Democrat Party's deputy leader Carsten Schneider. (SOUNDBITE) (German() DEPUTY HEAD OF THE SPD (SOCIAL DEMOCRATIC PARTY) PARLIAMENTARY FACTION, CARSTEN SCHNEIDER, SAYING: "The economy is nose-diving, the banks are closed and won't be opened. If Greece isn't ready to commit to a reform-plan and accept the cuts to military spending and tax rises for the super-rich, then there is no way out. So I don't see Greece's position as strengthened." One man who does is Alexis Tsipras. The Greek Prime Minister meeting leaders from other parties in the hope of presenting a united front in future negotiations with creditors. But without a compromise on their part, progress is unlikely, says IG's Alastair McCaig. SOUNDBITE (English) ALASTAIR MCCAIG, IG, SAYING: "We're going to see a continuation of the panic buying in the supermarkets that we've already seen in Greece, as the Greek populus prepares themselves for even greater pain and anguish over the rest of this week. Not just a snapshot insight into what life outside the euro zone might be, but possibly a template for what it might be for the months to come." If true, then it may not be long before this is swapped for this. Even though it doesn't want to, Greece may have to turn to the drachma or at least some form of IOU to pay wages and pensions. And in that case, it won't just be an ancient civilisation in ruins. But a modern inception too. The euro at risk of being consigned to history as little more than a shooting star.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Euro zone scrambles to keep Greece in

Monday, July 06, 2015 - 02:13