Greece's proposal at today's Eurogroup meeting could have solved the Greek crisis once and for all, but was rejected by the institutions due to half a percentage point of GDP, Greek Finance Minister Yanis Varoufakis stated during his address from Luxembourg, Thursday. He added that the real reason why negotiations were interrupted a few days ago was that the institutions formally known as the Troika (IMF, ECB, EU) did not have a mandate to negotiate that particular gap, therefore rejecting the project. Since Syriza's election, Greek authorities and the institutions have been negotiating for five months to unlock the €7.2 billion ($8bn) of rescue funds it needs to pay the IMF. The bailout extension ends on June 30. If Greece fails to meet the deadline, it faces default and exit from the Eurozone. The quarrel between Greece and its creditors has made the prospect of a deal being struck at Thursday's Eurozone finance ministers' meeting less likely.
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