Greek debt crisis reaches ‘DEFCON 1’ as savers pull €400m in ONE DAY and markets plunge

PANIC has descended on Greece as the debt-stricken country careers out the eurozone – with savers pulling millions in cash while investors continue to flee financial markets.

The Greek Prime Minister today blasted Athens’ European Union creditors who he said were trying to “humiliate” and “strangle” Greece into making proposed spending cuts in return for bailout cash.

Alexis Tsipras confirmed that talks have completely stalled, with the two sides in total stalemate over austerity measures.

In a speech to his parliament he said: “I’m certain future historians will recognise that little Greece, with its little power, is today fighting a battle beyond its capacity not just on its own behalf but on behalf of the people of Europe.”

Michael Grosse-Broemer, of Germany’s ruling Christian Democratic Union party and deputy floor leader in the country’s parliament, today said: “In the event a solid reform package is not presented, then a ‘Grexit’ would have to be accepted if necessary.”

Mr Grosse-Broemer, a key ally of German chancellor Angela Merkel, added that it was up to Greece to give up its “state of denial”.

He said: “I’m not so sure anymore if the Greek government is really interested in averting damage for the people of Greece.”

The comments have sent further ripples of fear through already fragile financial markets.

Greek savers have started pulling cash out of banks at an ever fast rate with another €400 million withdrawn from the country’s banks in a single day yesterday.

It’s thought the Greek government will soon have little choice but to impose capital controls, a move that could spark riots and demonstrations in Athens.

Full article: Greek debt crisis reaches ‘DEFCON 1’ as savers pull €400m in ONE DAY and markets plunge (Express)

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