The noose is tightening around the Greek economy as talks between the embattled country and its creditors fail once more..

Citizens of the island nation are continuing to withdraw money from their banks in anticipation of the worst.

Greece has just days to reach an agreement to unfreeze 7.2 billion euros. This money is needed to pay 1.5 billion euros on June 30. To unlock this money Greece needs to  meet certain criteria; criteria, it says is unfair.

The Greek proposal to satisfy its creditors focused mainly on tax increases to achieve budget savings. But the IMF-EU creditors are demanding more spending cuts.

The problem is that these spending cuts would force more austerity measures onto the citizens of Greece. The ruling Syriza party was swept to government on the promise of ending such austerity.

Greece has already endured five years of austerity measures. During this time they have received 240 billion euros in bailout packages. At the time of the Greek crisis (in 2010) Greece had debts totalling almost 180 per cent of its annual economic output. Debts, it says, incurred from being outplayed by the other members of the EU.

Greek Prime Minister Alexis Tsipras was elected on the promise of seeking debt forgiveness from creditors; something which seems reasonable: It is, after all, the IMF unlocking funds enabling Greece to repay a loan to the IMF. But yet it is something he has so far failed to achieve.

Should Tsipras be convinced of the need to bow to IMF-EU demands for continued austerity, he risks splitting his own Syriza party. Many members are staunch in their opposition to what they consider to be little more than scapegoating and blackmail.

Concessions have already been made from all sides. Creditors have lowered their demands for a primary surplus (a surplus without counting outgoing interest payments on debts); while Greece has instituted major tax reforms.

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