Greece faces 'difficult' talks to stay in euro

Eurozone finance chiefs warned that last-ditch talks today on a bailout deal to stop Greece crashing out of the euro would be "extremely difficult", blaming a collapse of trust in the government in Athens.
Hardline Germany led a chorus of scepticism as ministers prepared to give a verdict on leftist Greek Prime Minister Alexis Tsipras's new reform plan for a third rescue package worth more than 80 billion euros (USD 89 billion).
But France and some smaller nations said there was a good basis for negotiations on the new proposals of pension cuts and tax hikes, which were approved by the Greek parliament in the early hours of today.

"We will have extremely difficult negotiations," German Finance Minister Wolfgang Schaeuble told reporters on his way into the talks in Brussels.
"In the last months hope has been destroyed in an incredible way, even up to just a few hours ago. Definitely we cannot trust promises," he added.
Schaeuble even proposed during the meeting that Greece take a five-year break from the euro to sort out its finances, according to the Frankfurter Allgemeine Sonntagszeitung newspaper. A German official declined to comment.

Eurogroup chief Jeroen Dijsselbloem insisted on the need to build trust after six months of torturous debt deal negotiations and a sudden referendum in which Greeks overwhelmingly rejected creditors' bailout terms.

"There is a major issue of trust -- can the Greek government be trusted to do what they are promising in coming weeks, months and years?" said Dijsselbloem, who is also the Dutch finance minister.
However Finance Minister Michel Sapin of France, which has been Greece's biggest supporter in talks to avoid a "Grexit", said he hoped the talks would "go as far as possible to find a deal."
The finance ministers' meeting is meant to reach a final verdict ahead of a make-or-break EU summit on Sunday.
Tsipras won the backing of 251 out of 300 deputies in the Greek parliament for his reform plans, even though they are similar to the ones that Greeks rejected in the referendum.

Greece's creditors fear it will not keep its promises after two previous bailouts worth 240 billion euros merely heaped fresh debt on a mountain worth nearly 180 percent of the country's GDP.
Despite roundly voting 'No' last Sunday to accepting tough austerity terms for a bailout that expired June 30, Greeks are alarmed at capital controls that have closed banks and rationed cash at ATMs for nearly two weeks.
Queueing today at a cash machine in Athens, Vassilis Papoutsoglou, 52, said: "We still don't know what will happen tomorrow.