Greece Talks' Deadlock Will Start ‘EU Agony’ – European Politician

Greek Prime Minister Alexis Tsipras has announced a referendum on July 5 to decide whether the austerity policy should be continued. The step caused criticism among many European politicians, with the German Finance Minister Wolfgang Schauble saying that the Eurogroup has no alternative plan for Greece.

The European Union will start suffering as the situation with Greece becomes more complicated, said Member of the European Parliament Jean-Luc Melanshon.

"It starts with the agony of the European Union. On the one hand — money, on the other — democracy. Merkel or Tsipras," the politician wrote on his Facebook page.

On Saturday, the Greek government announced a national referendum on the issue of whether or not to accept the creditors’ conditions and continue the policy of austerity. The voting is set to take place on July 5.

Earlier, during a meeting in Brussels with German Chancellor Angela Merkel and French President Francois Hollande, Tsipras said that the Greek side does not understand why creditors insist on “keeping such tough measures.”

On February 20, the Eurogroup agreed to extend the loan program for Greece by another four months in exchange for further reforms. Greece pledged to move toward EU banking, tax and other regulations.

The rescue plan was extended until June 30, when Greece is expected to deliver a $1.7-billion payment to the International Monetary Fund (IMF).