Greek PM calls on EU and IMF to ‘accede to realism’

Greek prime minister Alexis Tsipras has called on the EU and IMF to "accede to realism" and end the "vicious cycle of austerity" in an attempt to increase pressure on the country's international lenders.

A day after talks on Greece's bailout ended in acrimony in Brussels, Mr Tsipras accused negotiators of "looting" and "pillaging" Greece over the last five years and criticised calls for further pension cuts.

His comments came amid increasing fears that a reform package for Greece will not be agreed before Thursday’s key meeting of euro zone finance ministers.

Stock markets across Europe fell sharply on Monday reflecting investor concern that Greece is moving closer to default. The Greek government is due to repay approximately €1.5 billion to the IMF in just under two weeks, while a further €6.5 billion falls due to the European Central Bank in July and August. The latest round of talks ended prematurely on Sunday evening, with EU officials accusing Greek negotiators of presenting "vague and repetitive" proposals.

Amid signs that German public opinion is hardening against further concessions for Greece, Germany’s European commissioner Günther Öttinge claimed that it was time to start making plans for a “state of emergency” should Greece not reach a deal before the end of the month.

It follows a warning at the weekend from German vice-chancellor Sigmar Gabriel – widely seen as relatively sympathetic to Greece's concerns – that patience is wearing thin across Europe.

Reuters reported that the outflow of deposits from Greek bank accelerated on Monday, with €400 million withdrawn from Greek bank accounts .

With the European Central Bank due to review its provision of emergency funding to Greek banks on Wednesday, ECB chief Mario Draghi told the European Parliament in Brussels that any decision to halt the provision of emergency liquidity to Greece would need a two-thirds majority at the governing council.

The euro zone’s central bank is keeping the Greek banks afloat with approximately €83 billion of emergency liquidity assistance.

Mr Draghi rejected accusations from some MEPs that the institutions were “blackmailing” Greece, insisting that the ECB was simply implementing its own rules.

“You’re trying to portray the ECB as a political entity. We’re not a political entity.”

He underlined the importance of reaching an agreement with Greece a number of times during his hearing before the European Parliament.

“We need a strong and comprehensive agreement with Greece and we need it very soon,” he said, adding that the ball “lies squarely in the camp of the Greek government to take the next steps”.

Meanwhile a Greek government spokesman said Mr Tsipras would travel to Russia as planned on Thursday for an economic forum in Saint Petersburg, where he will meet President Vladimir Putin – the same day as the Eurogroup meeting in Luxembourg.

IMF managing director Christine Lagarde and Mr Draghi will attend the meeting of euro zone finance ministers which is widely seen as the last opportunity for Greece to strike a deal with lenders.