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Greek debt crisis: A crucial 48 hours

Senior Eurozone leaders are insisting they are closer to breaking five months of stalemate over the Greek bailout.

They are due to meet today back-to-back to devise a plan to keep Greece in the Eurozone as emergency talks enter a crucial 48 hours.

They will have to reach a detailed agreement in which Greece must repay a £1.15bn International Monetary Fund (IMF) loan by 30 June 2015 and if it fails to do so, it may trigger a bank run and potentially being struck out of the European Union.

The European commission president, Jean-Claude Juncker said; “I am convinced that we will come up with a final agreement in the course of the week for the simple reason that we have to find an agreement this week” [1].

Juncker said he had proposed a 35 billion Euro programme for growth-enhancing measures in Greece up to 2020. The money appeared to be a restatement of existing EU budget funds earmarked for Athens [2].

[1] The Guardian. ‘Greek debit crisis enters crucial 48 hours as optimism over bailout rises’. http://www.theguardian.com

[2] Reuters. ‘Greece offers new proposal to avert default, creditors see hope’. http://uk.reuters.com