Greek government reconsidering Juncker’s last-minute proposal, sources say

Prime Minister Alexis Tsipras is reconsidering the last-ditch offer made by European Commission President Jean-Claude Juncker, sources have told Kathimerini.

Kathimerini understands that the pressure caused by the closure of banks as well as the expiration of the Greek bailout program on Tuesday has caused some members of the government to urge Tsipras to accept Juncker’s offer.

Sources said the prime minister’s office has already informed the Commission that it is examining the proposal.

According to what is known of the proposal Tsipras would have to send a written acceptance of the version of proposals from the lenders published on Sunday, with a pledge to campaign for them to be accepted in the planned July 5 referendum.

The offer published on Sunday incorporated a proposal from Greece that would set value-added tax rates on hotels at 13 percent, rather than at 23 percent as originally planned in the lenders' proposals. It was not immediately clear whether there would be any additional changes.

If the offer were accepted, the eurozone finance ministers could adopt a statement saying that a 2012 pledge to consider stretching out loan maturities, lowering interest rates and extending an interest payment moratorium on eurozone loans to Greece would be implemented in October.

The offer would be conditional on a letter to Juncker, Eurogroup chairman Jeroen Dijsselbloem, German Chancellor Angela Merkel and French President Francois Hollande arriving in time to arrange an emergency meeting of the Eurogroup on Tuesday.