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Pressing harder for Greek concessions

Wednesday, June 10, 2015 - 01:48

Athens has accused its international creditors of failing to respond to its latest proposal to break the impasse over a cash-for-reforms deal. As Hayley Platt reports there's a growing sense of unease as Greece gets even closer to bankruptcy.

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Frustration and fear on the streets of Athens. This latest protest is over taxation and austerity measures. (SOUNDBITE)(Greek) PROTESTOR, VASSILIS PERIVOLIS, SAYING: "We are fighting, we are trying to bring more people to our cause and form a movement so that all these unpopular measures are not implemented." But the government's refusal to agree more 'unpopular measures' is holding up a cash-for-reform deal. And the Greek government has also accused the EU of failing to formally respond to its latest proposal. Privately key European figures have dismissed it and planned talks have been postponed. It's all making investors a little more nervous but there's no panic yet, says Will Hobbs, Head of Investment Strategy at Barclays. SOUNDBITE (English) WILL HOBBS, HEAD OF INVESTMENT STRATEGY, EUROPE, BARCLAYS CAPITAL, SAYING: "There is still definitely work to do to get there but the vague contours of a deal have started to become visible to us. And we still think it probable that Greece should stay in the euro zone. That doesn't mean that there's isn't a risk of Grexit but certainly we think that investors should be betting on Greece staying." Greece's Prime Minister Alexi Tsipras has still gone to Brussels. It's thought the lenders are trying to up the pressure so he finally gives in over so-called red-line reforms like pensions. Most Greeks don't want him too to relent - but they don't want to leave the euro either And so the battle continues with inevitable consequences for the economy. Pharmacists were the latest to strike over plans to let supermarkets sell their products. And another 2 percent year-on-year fall in consumer prices - was the latest piece of worrying data. The sick economy can still be treated - but with money running out at the end of the month there's a chance it may not be able to get the medicine in time.