Tsipras and Merkel meet for austerity discussions
Greek and German leaders meet for talks that might be instrumental in the discussion of austerity measures amid fears of cash shortage in Greece
Greek Prime Minister Alexis Tsipras is due to meet German Chancellor Angela Merkel in Berlin on Monday in high-stakes talks that could be decisive in the discussion of austerity measures.
The talks will take place amid mounting concern that Athens is running out of money, and both countries have been at odds over Greece's efforts to renegotiate the terms of its international bailout.
According to the Financial Times Tsipras had warned Merkel that the country could not meet imminent debt payments without new aid. However, Merkel said on Friday there would be no new money without reforms.
The BBC reports that Spain's Economy Minister, Luis de Guindos, backed Germany's position; saying that Greece should implement the promised economic reforms.
"There will not be any disbursement before there is a real test that the reforms have been approved and implemented," he said.
According to the FT, Greece's risky financial position was stressed in a letter sent by Tsipras to Merkel on 15th March, where, he writes that Greece faced a short term cash flow-crisis and may have to choose between paying pensions and wages and meeting debt obligations.
It seems clear from the letter, which option Tsipras would choose, as he said that to add to Greece's social crisis was "a prospect that I will not countenance".
Greece promised to meet creditors' demands to present an economic reform package within days at the last EU summit, in a hope to unlock the cash it needs to avoid leaving the Eurozone.
