EU’s two poles of power – Germany and France are divided on the nature of commitment that should be made by Greece to get immediate bailout money and thus preventing Greek exit from Euro.
A traditional hardliner and financial discipline advocate; Germany has demanded that has Greece has to make some immediate legislative reform measures legally to get the emergency aid.
France on the other has observed that the existing commitment by Greece is enough. Paris is known for socialist version of crisis management and a different French voice has encouraged conflicting opinion among other members.
Differences in the EU means that fresh crisis in the bailout talks now happens among creditors.
Germany and France were the architects of European economic integration and the advocates of the common currency.
Greece needs around 53 billion Euros to survive in the Euro zone. Earlier, the creditor’s meeting was convened to get a final decision on Sunday.
Revealing the conflict in the currency union, small partner Luxembourg warned that Greek exit will bring a catastrophe for Europe. Finance Minister Jean Asselborn has stated that Germany’s hard stand will be fatal for its reputation in the EU.
Extension of the crisis and non decision among creditors means European Central Bank has to extend liquidity support to the cash strained Greek banks until a final consensus is reached on bailout.