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Tsipras Seeks New 3-Year Bailout, Has Until Thursday To Submit New Proposal To Eurozone

| Jul 08, 2015 09:55 AM EDT

Brussels is the capital city of Belgium and home to the headquarters of the European Union.

Greece proposed to European leaders to put in place as early as next week vital measures such as pension payouts and taxes. In a one-page letter, Greek Prime Minister Alexis Tsipras asked for a new  three-year bailout while he pledged to initiate reforms.

He said Athens welcomes a chance to try steps that would make the embattled nation's debt "sustainable and viable over the long term," reports The Washington Post. Tsipras said the country is committed to remain being part of the Eurozone, contrary to speculations that it would leave the regional currency.

EU Economy Commissioner Pierre Moscovici said Europe also wants to stop Greece from leaving the Eurozone. "The Commission does not want a Grexit. Grexit would be a terrible failure and we are fighting to avoid it," he told BBC's Today program.

The leaders gave Greece until Thursday to present new proposals on how it would convince its creditors to give it a new deal, while calling for a full European Union summit, BBC reports. All 28 members of the EU will attend the summit where the Eurozone finance ministers are expected to tackle Greece's new proposal.

The EU told Athens to come up with a new deal or its banks, which is experiencing heavy withdrawals and have imposed limits to stem its financial hemorrhage, would go bust on Monday. According to European Council President Donald Tusk, if Greek banks collapse and the country goes bankrupt, it would affect the whole continent.

Tsipras stressed he wants an agreement that would be socially just and economically viable. He promised to meet the EU's call for a new deal by Thursday.

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