Greece Clings to Hope as Alexis Tsipras Battles Banking Collapse

At the Guardian UK, "Prime minister pleads with sceptical leaders to provide two-pronged financial assistance with Angela Merkel saying it is ‘matter of days’ until time runs out":

Greece continued to cling to hopes of remaining within the eurozone as it pleaded with its sceptical European partners on Tuesday to agree fresh financial assistance that would prevent the collapse of its banks within the next few days.

Alexis Tsipras, the Greek prime minister, submitted proposals for a third bailout to a summit of eurozone leaders in Brussels, making clear that his country would also need immediate support to stop a banking collapse that would force a return to the drachma.

Greece’s new finance minister, Euclid Tsakalotos, prompted optimism of a breakthrough when he said there was “political will” in Brussels to keep the eurozone intact.

Government sources in Greece said Tsipras has proposed a two-pronged approach. The prime minister asked for three to four months of bridging finance that would keep the banks open and allow Athens to pay their pressing debts to the European Central Bank and the International Monetary Fund. That would be followed by a third bailout package lasting two years, which would include debt relief.

Despite his favoured no vote winning Sunday’s referendum by a large majority, Tsipras is aware that both emergency finance and a longer-term deal under the European Stability Mechanism (ESM) would come with significant strings attached.

In the hope that Washington would lean on Brussels to agree a deal, Tsipras spoke to Barack Obama before the summit. The US president then spoke to Angela Merkel, putting pressure on the German chancellor to keep Greece in the eurozone. The White House is keen to avoid Greece leaving the euro, fearful that it could increase Russia’s influence in the eastern Mediterranean.

Brussels has made it clear that Greece’s fate will be decided quickly. Refusal by eurozone leaders – many of whom have lost patience with Tsipras – would lead to Greece’s departure from the single currency being confirmed at the impending summit of all 28 European Union countries, which has been tentatively planned for Sunday...

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