Greek crisis: surrender fiscal sovereignty in return for bailout, Merkel tells Tsipras

German and French leaders press Greek leader for guarantees over austerity measures in what an EU official describes as 'extensive mental waterboarding'

European leaders have confronted the Greek government with a draconian package of austerity measures entailing a surrender of fiscal sovereignty as the price of avoiding financial collapse and being ejected from the single currency bloc.

A weekend of high tension that threatened to break Europe in two climaxed on Sunday night at a summit of eurozone leaders in Brussels where the German chancellor, Angela Merkel, and President Franiois Hollande of France presented Greece's radical prime minister, Alexis Tsipras, with an ultimatum.

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