10 Jul 2015

Greece submits economic reform plan

11:30 am on 10 July 2015

Greece's government has agreed a reform programme and will submit its proposals to its international lenders soon, the defence minister has said.

A Young street musicians plays the piano accordion on a street in the Plaka district of Athens.

A Young street musicians plays the piano accordion on a street in the Plaka district of Athens. Photo: AFP

The Greek government has submitted economic reform proposals to try to secure a further bailout from its creditors, eurozone officials say.

They say they received the plan just two hours before a midnight deadline. They will now study it ahead of EU meetings at the weekend.

Greece's lenders had demanded tax and pension reforms in return for funds.

The indebted country needs a third bailout to avoid a default and a possible exit from the euro.

'No capitulation'

Jeroen Dijsselbloem, the head of the 19-member eurozone group of finance ministers, confirmed that he had received the Greek proposals.

Earlier, Greek Prime Minister Alexis Tsipras spent the day seeking agreement on the reforms from his government partners.

French President Francois Hollande (4thR) attends a meeting with German Chancellor (L) at the Elysee Palace in Paris.

French President Francois Hollande (R) attends a meeting with German Chancellor Angela Merkel (L) in Paris. Photo: AFP

The Greek parliament will vote on Mr Tsipras' proposals, this weekend.

The plan will be then considered by eurozone finance ministers on Saturday, and by EU leaders at a summit in Brussels on Sunday.

Greeks have been queuing to withdraw cash from banks.

Greeks have been queuing to withdraw cash from banks. Photo: AFP

Although reforms rejected in the referendum will now be conceded, this is no capitulation by Mr Tsipras, the BBC's Chris Morris in Brussels reports.

He is asking for far more in return than was on offer last month, our correspondent adds. Greece is reportedly seeking €53.5 as part of a new bailout package and restructuring of its huge debt burden.

Earlier on Thursday, European Council President Donald Tusk said creditors would need to respond to Greece's reform plans with a "realistic proposal on debt sustainability".

Mr Tusk's comments could be seen as supporting calls to reduce Greece's debt burden.

But the German Chancellor Angela Merkel ruled out debt reduction, saying she was against "the classic haircut".

Greek banks have been closed for nearly a fortnight with limits placed on cash withdrawals.

-BBC

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