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"Tell the chef, the beer is on me."
Athens has submitted a package of tough spending cuts and tax rises in an attempt to reach a €53.5bn bailout and avoid Grexit.
As flagged up earlier, this deal is NOT done yet.
AFP’s Danny Kemp has heard that it’s a 50-50 shout; Greece still has serious work to do to persuade some eurozone neighbours.
Chances of deal still 50-50 because hardliners like Germany have to be convinced, EU sources say
HEADS-UP. Greece’s lenders have kicked the tires of the new austerity programme, and they’re not unimpressed.
AFP has the story:
Greece’s international creditors believe its latest debt proposals are positive enough to be the basis for a new bailout worth 74 billion euros, an EU source said Friday.
“There has been positive evaluation of the Greek programme,” the source said, with the EU’s bailout fund, the European Stability Mechanism ready to consider putting up €58bn plus €16 bn from the International Monetary Fund for a new debt rescue.
The interim leader of the New Democracy party, Vangelis Meimarakis, now has the stand.
He blames Tsipras for creating the crisis; no other leader has brought Greece within three days of being thrown out of Europe.
ND's Meimarakis (to Tsipras) says we will vote to give you a mandate to negotiate with the creditors and bring back an agreement on Sunday.
Fighting talk from Alexis Tsipras;
We fought for the right of the Greek people. I'm sure this battle won't be in vain - Tsipras #Greece
.@tsipras_eu We have a duty to continue fighting with pride. We have to make difficult decisions I'm sure. We will manage to stay in Europe.
Tsipras says he hopes Greece has reached the end of a very difficult battle that has scarred the country’s recent history.
When he can get a word in, Tsipras is making the key point that the issue of Greece’s debt sustainability is finally on the table.
For the first time, we're talking about the sustainability of our debt - Tsipras #Greece
With tensions high, former Greek deputy prime minister Evangelos Venizelos begins yelling at Tsipras.
Venizelos screams at @tsipras_eu "you're lying" during his address in parliament
Prime minister Tsipras is arguing that, by backing his austerity plan, Greece can put the threat of Grexit behind it, and start the process of growth and investment.
#Tsipras: we have to agree that the package of reforms asked of us is tough. But we have the possibility of an agreement that can end grexit
#Tsipras: This deal will lead to a european programme. The Imf will only have a technical consulting role. The troika as we know it, ends.
I did the best I could, argues Alexis Tsipras:
I did what was humanly possibly in difficult circumstances - Tsipras #Greece
I never asked the public for a No vote to mean a Grexit or rupture - Tsipras #Greece
Alexis Tsipras begins by admitting that he has made mistakes in the negotiating process.
And he concedes that the offer has many differences from his pre-election promises (indeed!)
#Tsipras in parliament: "From now on there is a minefield ahead, there are traps and I cannot hide that from anyone"
Euclid Tsakalotos, the new finance minister, introduces the bill.
This isn't going to plan..TSAKALOTOS: Greek proposals better than Juncker’s plan. Have recessionary character. Better than before referendum
You can watch the debate here:
And they’re off! Greek MPs are finally debating the bailout plan. Result, with any luck, in 3 hours.
Greece’s capital controls will remain in place at least until Monday, and possibly rather longer than that.
So local readers should check out this guide by journalist Omaira Gill on how to keep accessing ATMs as safely and easily as possible:
The real opprobrium this evening has been left for former finance minister Yanis Varoufakis whose unexpected take of leave, on such an important occasion, has caused outrage among his fellow MPs.
Accusing the academic-turned-politician of leading Greece to this place - where it has been left staring into the abyss of euro exit, its banks closed, capital controls enforced - the Pasok MP Andreas Loverdos told SKAI TV.
“Yanis Varoufakis was the worst finance minister this country had since the restoration of democracy in 1974. The fact that he has preferred to get on a boat and go to Aegina [the Saronic Gulf island 16 miles north of Athens] for family reasons is totally unacceptable and shows just how superficial he is.”
“In fact he makes it clear he supports the government, and if he were present would vote ‘yes,’”
Skai news reports #Greece parliament vote will happen in roughly 4 hours. 3AM local time.
And here’s the reason we are facing a long night, from our correspondent in Athens Helena Smith.
It may be the most important vote in recent modern Greek history but the president of the parliament, Zoe Konstantopoulou, has decided its 300 members will have to wait.
A stickler for following the rules, the young Konstantopoulou is insisting that as the bill is being fast-tracked parliament will have to convene on two consecutive days. As lawmakers were waiting for the session to begin, the fiery leftist called a meeting of parliamentary vice presidents to explain the situation. The meeting is still ongoing.
It’s going to be a late night, guys...
#Greece Parliament debate to begin at 1 minute past midnight so that it's "tomorrow" (for procedural reasons). They are fucking kidding us.
It’s important to remember that Greece hasn’t actually agreed anything with the eurozone.
And there’s no guarantee of success this weekend.
“I’m not optimistic,”
“There are too many problems, not enough time, too many people who do not believe the Greeks will deliver their side of the bargain.”
Another poll has shown that just over 60% of Greeks favour a new bailout programme; coincidentally, the same percentage that voted NO last week.
More than half of Greeks fear the impact of leaving the eurozone, according to a poll tonight:
Exactly a week ago, tens of thousands of passionate no campaigners packed out Syntagma Square, in a huge demonstration calling for Greece to reject its creditors demands.
It’s a different picture tonight:
The FT has launched an profile of Alexis Tsipras tonight, outlining how a pragmatic leader has morphed into a hardliner, to Brussels’ growing annoyance:
For months, eurozone officials assumed Mr Tsipras was simply attempting to maximise concessions before he struck a deal. But some now believe the brinkmanship has always been a way to exit the binding constraints of the euro while blaming European authorities if Grexit goes wrong.
I guess we’ll find out on Saturday whether Wolfgang Schäuble really wants Grexit, or whether the blame lies elsewhere.....
They bluffed, it was called. Not much more to it.. http://t.co/eRcb9KMZBU "Germany won’t spare Greek pain" by Yanis Varoufakis
In the Guardian tonight, Yanis Varoufakis argues that German finance minister Wolfgang Schäuble has been leading a cabal of eurozone countries who want Greece kicked out:
That, the former finance minister says, is why they refused to engage with the debt restructuring issue which is vital to Greece’s recovery.
After the crisis of 2008/9, Europe didn’t know how to respond. Should it prepare the ground for at least one expulsion (that is, Grexit) to strengthen discipline? Or move to a federation? So far it has done neither, its existentialist angst forever rising. Schäuble is convinced that as things stand, he needs a Grexit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without which the risk of Grexit would fade, has acquired a new usefulness for Schauble.
What do I mean by that? Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.
After days of putting pressure on Europe, the US government has welcome the news that Greece has submitted new reform plans.
It’s not celebrating yet, though.
“We are pleased to see that Greece has taken the step of putting forward a specific proposal, but it’s one that their creditors will have to evaluate.”
Former finance minister Yanis Varoufakis has been spied on a boat, heading away from Athens (reminder, he’s already showed support for the government’s proposal).
Varoufakis spotted on a boat to his holiday home -PHOTOS - http://t.co/0LLHd2MJf6
Ευτυχώς υπάρχουν άνθρωποι που σέβονται τι σημαίνει να θέλω να περάσω το ΣΚ με την μικρή μου κόρη πριν επιστρέψει στην Αυστραλία όπου ζει...
The actual rally in Athens looks quite peaceful:
Riot police have scuffled with protesters at tonight’s anti-austerity rally in central Athens:
Left Platform's endorsement means Tsipras stays on and implements potential agreement. Now it's up to Tsakalotos to convince the Eurogroup.
Greek media are reporting that the Left Platform of Syriza will support the reform plan in tonight’s vote, despite their misgivings over piling fresh austerity on Greece.
That raises the chances that Tsipras gets the deal though, without losing his own majority:
Obstacle 1, cleared. Now to the weekend and the creditors. https://t.co/Gv7zF8qn3O
More on the rally, from Emma Graham-Harrison in Athens:
Hundreds of marchers at a “no” rally, many carrying the flag of communist trade union PAME are marching though Syntagma square in front of parliament.
“They took the no and made it a yes” said protestor Giorgos Tsolakas, 34.
Meanwhile an anti-austerity rally has been taking place in Athens, as parliament debates the new Greek proposals to its creditors.
There are few red lines in the quest to keep Greece in the eurozone for years to come, but nominal debt reduction is one of them, according to Slovakian finance minister Peter Kazimir .
Writing in the Financial Times (£) he said his government’s preference was not to eject any country from the eurozone.
Stock markets have moved sharply higher on optimism that Greece’s new proposals can form the basis of a deal with its creditors to avoid the country being ejected from the eurozone:
More from Tsakalotos courtesy of Nick Malkoutzix, deputy editor of Greek daily Kathimerini:
Greek FinMin Tsakalotos: Greek capital controls can be quickly reversed
Here is Greek finance minister Euclid Tsakalotos addressing parliament now:
Greek banks have a cushion of around €750m, enough to last until Monday night, a senior Greek banker has told Reuters.
But they will need €10bn to €14bn of fresh capital to keep them afloat, the banker told Reuters, even if a deal is reached with the country’s creditors over the weekend.
Bank deposits could run out by Sunday because of outflows. With emergency liquidity assistance from the Eurosystem frozen at €89 billion, we estimate that Greek banks have limited headroom to deal with daily deposit outflows (estimated at between €100-150 million) and will likely exhaust their liquidity resources in the coming days.
Policymakers from the European Central Bank have also hinted that, in the absence of any agreement by Sunday, the ECB may curtail ELA, rather than just keeping it at the current level.
.@OxfordEconomics on Greece: "capital controls are almost certainly here to stay for months, if not years".
So it could all get very tight:
#Greece gov't in risk of losing parl majority. They can afford up to 12 No votes. It looks like No votes are now between 6 and 8.
Yanis Varoufakis may not be in parliament for the vote but he has shown his support for his successor Euclid Tsakalotos in tomorrow’s Eurogroup meeting:
Αύριο ο Ευκλείδης αξίζει την στήριξη όλων μας. Την δική μου την έχει στο ακέραιο. Μετά θα αξιολογήσουμε το αποτέλεσμα pic.twitter.com/yOUhhP8hRO
The YouGov poll also shows that support in Germany for a Grexit is falling. A month ago 59% of Germans wanted Greece to leave the eurozone but that number has now fallen below 50% for the first time since February, and opposition is at a high of 37%.
Some interesting results from a YouGov poll on attitudes towards Greece, which shows the British and French much more sympathetic than Germany or the Nordic states.
Lithuanian president Dalia Grybauskaite is sounding a cautious note.
Reuters reports her comments to reporters:
It is probably too early to evaluate [the proposals] because they are based on old information and it seems those proposals will really not be enough.
We take the document of proposals as [indicating] Greece’s wish to go back to the negotiating table. It’s too early to start guessing how the negotiations will end.
Here’s the formal agenda for Saturday’s Eurogroup meeting:
The Eurogroup will discuss the recent request by the Greek authorities for financial assistance from the European Stability Mechanism (ESM) and their new proposals for a reform agenda.
The European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF) will present their assessment of risk to financial stability in the euro area, Greece’s financing needs and the sustainability of its public debt.
Here’s a nice chart showing the looming repayments which face Greece. The ECB looks particularly looming:
Guy Verhofstadt, the leader of the liberal group in the European Parliament who laid into Alexis Tsipras on Wednesday and saw his attack go viral, seems a little more consiliatory now. He tweeted earlier:
New Tsipras' plan contains improvement in the fight against corruption & privileges of different groups #Greekcrisis
Proposals #Greece can lead to deal this weekend. But the real work starts now, towards integration of euro area & a structural debt solution
Greece will have to deliver, but Europe as well ! By creating a treasury & debt management system for a sustainable solution for all
We have created in #Europe a currency Union without a political Union. This is simply not sustainable.
The US and Russia have both been voicing their views on the latest developments in Greece.
US Treasury secretary Jack Lew said both sides needed to rebuild trust, but a deal did appear closer and the position was better than just a couple of days ago. He said it was critical Greece took the difficult steps necessary, including structural reform.
Implying criticism of the European Union’s handling of the crisis, he asked at a news conference in the Russian city of Ufa where the EU had been when problems were accumulating in Greece.
How do the latest set of Greek proposals differ from those on the table when negotiations were abandoned nearly two weeks ago? Here we take a look at the differences:
Yanis Varoufakis will apparently not be at today’s vote:
If a deal to keep Greece in the eurozone fails, and the country leaves the single currency, it would need up to €33bn in transitional funding to help support its economy, according to Open Europe.
Up to €1.84bn of this could come from the UK, which would not go down well with the UK’s eurosceptics ahead of a referendum.
Open Europe estimates that, in terms of bare essentials, Greece could need between €18bn and €33bn in transitional funding to help support its economy after Grexit. This would cover things such as certain debt payments, some deficit funding and money to bolster reserves to aid in managing the new currency. It does not include the cost of bank recapitalisation which might be managed via nationalisation. If money was needed for this the cost could jump by tens of billions. Of course, there would be much wider costs to Grexit to both the Eurozone and Greece in terms of economic decline, contagion and Greek default on direct Eurozone exposures.
This money is unlikely to be provided entirely by the Eurozone. Open Europe expects it could be split equally between the Eurozone, the EU and the IMF. The Eurozone could provide funds bilaterally while the EU would utilise either the Balance of Payments assistance facility or the European Financial Stabilisation Mechanism. From the UK perspective this could mean underwriting shares of between €1bn and €1.84bn. While the cost of transitional funding should be predominantly shouldered by the Eurozone, there is a geopolitical and humanitarian case on the part of other EU members for helping stabilise Greece and keep it inside the EU. Furthermore, with a default and devaluation there might be more hope of these loans being repaid by Greece.
A quick recap.
Greece is inching closer to agreeing a third bailout deal that would avert bankruptcy and preserve its place in the eurozone, but it’s not a done deal yet.
We are confronted with crucial decisions.
“We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, but certainly not given a mandate to take Greece out of the eurozone.
GREEK MAIN OPPOSITION NEW DEMOCRACY PARTY SAYS AUTHORISES PM TSIPRAS TO REACH A DEAL, TO KEEP COUNTRY IN EURO ZONE - RTRS
“Equities are handsomely positive this morning thanks to Greece delivering what appears to be a more promising set of reforms proposals required to unlock the €53.5bn bailout it needs to secure its future within the Eurozone.
A potential softening of neighbouring (read German) rejection on Greek debt relief after international pressure is also helping as is a second day of gains in China, reversing some of the recent rout.
The largest opposition party, New Democracy has declared that it ‘authorises” Alexis Tsipras to reach a deal to keep Greece in the euro.
2/2 Kerameus:"Now is not the time to discuss why Syriza went from promising 12bn in grants to proposing 12bn in austerity measures." #grexit
The French ambassador to the US has no doubts about where the credit should go if a compromise is reached by the two sides:
#Greece. France has bern working quietly, these last days, to bridge the differences between both sides.
Meanwhile Fitch has said an eventual exit from the eurozone is now the probable outcome for Greece:
[The ratings agency’s global head of sovereigns] James McCormack, says the referendum’s ‘no’ vote was a defining moment, providing a substantial boost to the position of the Syriza-led government in its negotiations with creditors. However, Greece may have miscalculated:
“Greece’s strong argument in favour of greater accommodation on the part of creditors faces several hurdles that are likely to prove collectively insurmountable. The referendum might have tipped the balance of how other eurozone countries weigh the risks of Greece’s continued membership in the common currency area versus its exit, but this may become clear only once the history is written.”
Greek’s banks could run out of deposits by Sunday, according to ratings agency Moody’s.
Moody's on Greece: "Bank deposits could run out by Sunday because of outflows. Total Eurosystem funding exceeds sector’s private deposits."
Eurogroup president Jeroen Dijsselbloem has said he is waiting for a technical analysis of the latest Greek proposals before commenting on its content (courtesy Reuters).
*DIJSSELBLOEM SAYS INSTITUTIONS TO REPORT ON PROPOSALS TONIGHT
Busy, busy as the last ditch talks continue. Here’s the Finnish finance minister:
Morning and early afternoon on the phone, non-stop. #Eurogroup in Brussels tomorrow.
Artur Fischer, the joint CEO of the Berlin Stock Exchange has just told Kate Connolly in Berlin about the huge domestic consequences a third bailout might have for Merkel.
“She is facing huge internal difficulties that have the potential to end her chancellorship.”
“But then it has to be agreed on amongst all the parties and we’re looking at another two weeks”.
“There are many cultural differences at play here, including the fact that we Germans hate uncertainty. We invent a DIN Norm (or standard) for everything, including chairs, to ensure they will fit under tables, we like that certainty so much. That love of certainty means I always turn up at a meeting on time. So we don’t like throwing money at something not knowing where it’s going.”
And here are the five holdouts:
Greece’s new austerity plan is being discussed at committee level now, and some MPs are unhappy:
* Five hardline leftists in Greek ruling syriza say Greek Eurozone exit preferable to deal with austerity and without debt relief - RTRS
There is an interesting take in today’s Bild as to why US President Barack Obama is taking such an interest in the Greek crisis, apparently calling Merkel and Tsipras on a regular basis, out of fear of the impact on the global economy and even global security that a Grexit might have, writes Kate Connolly in Berlin.
The German tabloid quotes a top German diplomat who explains why the US is so flummoxed over why Greece - which after all has an economy about the size of Tennessee’s - is considered such a headache in Europe.
“I offered to my friend Jack Lew (his US counterpart) that we would take Puerto Rico into the Eurozone, if the USA took Greece into the Dollar Union. He thought I was joking”.
“It’s easy for President Obama to advise us to save Greece. It’s the Europeans who have to bear the costs, not the USA.”
Debt campaigners have been reminding Germany that Greece needs meaningful debt relief:
The IMF’s outgoing chief economist, Olivier Blanchard, has published a defence of the Fund’s role in the Greek bailout saga.
It includes a pop at the eurozone for ignoring the need for Greek debt relief:
Slovakia’s finance minister isn’t convinced (yet, anyway) that Greece’s reforms plan is solid enough to deliver a deal:
The view from Latvia has been expressed by prime minister Laimdota Straujuma, speaking on state broadcaster Deutschlankfunk (dlf.de) this morning.
Straujuma said that the Latvian parliament would have to vote on any new bailout. It would be the first time it had been directly involved, as during bailouts 1 and 2, the country was not yet part of the Euro. She told DLF she would have difficulty persuading her parliament to support such a move.
“It will be very hard for me to persuade the parliament. And for the parliament it will be difficult to vote for it, because the average Pension in Latvia is considerably less than in Greece, and if you were to ask the Latvians today whether they are willing to lend money to Greece, you can probably guess what their answer would be.”
“Humanitarian aid is another matter. If money is needed for Greek hospitals or for medicines, the Latvians will help. Greece is an EU member, but it’s the Greek government that is responsible for what happens”.
In the Czech Republic, there are deep-seated anxieties that the Greek crisis could unleash old Cold War tensions.
Writing in the leading financial daily, Hospodarsky Noviny, leading commentator Daniel Anyz explains the geopolitical dimensions of the crisis, and the consequences of Grexit.
“(Russian president Vladimir) Putin needs very little imagination to consider what an exit of Greece from the Eurzone would trigger. The feeling of bitterness towards Europe would deepen and Greece would move a step closer towards Russia.”
“Would Athens change its view on the sanctions against Russia? Would Greece continue to support Nato military operations? Would it still allow the military ships of its partner countries into its harbours? “A Grexit would play right into Putin’s hands. Greece would turn into an extremely problematic European partner with separatist tendencies. Then it’ll be even harder to find consensus in Nato on important decisions.”
Back in Athens, Syriza MPs are arguing that Greece should hunker down, and live to fight another day.
#Greece LaborMin Skourletis: Current balance of power [in Eurozone] makes capitulation inevitable now. We'll reach our aims at a better time
Angelique Chrisafis has been speaking to young No voters in Thessaloniki about the latest bailout proposals:
“I think everyone has always known that things were going to be very difficult now and in the coming years. The deal will be very difficult for us, but it’s probably the best solution. Better a deal than no deal. I think our only chance is to continue on our road in the eurozone.
The No vote was a way for Greeks to express their feelings to Europe, there’s a certain happiness that the No vote has been heard. And it seems there has been an understanding that more should be put on the table for Greece, in the form of debt relief. There has been progress.”
“I’m so proud of the No vote, it will be remembered as a key moment in Greek history. I trust Tspiras, even if some people don’t.”
“We always knew, whatever the referendum result, that it would be difficult whatever happens. We had never forgotten that.”
Greece’s fate will effectively be decided tomorrow, flags up Ian in Brussels:
Saturday’s eurozone finance ministers meeting will be decisive in deciding whether negotiations over a third bailout begin, or whether leaders should start planning for Grexit on Sunday.
#greece d-day sat, not sun,€group decision on whether to open new programme negs. eu official wd be 'astonished' if heads overturned finmins
Alexis Tsipras’s battle against the creditors has ended in ignominy, writes our economics editor Larry Elliott:
Greece now faces a fresh wave of austerity policies – increases in VAT, public sector wage cuts, less generous pensions – that will put the brake on activity. This approach has been tried repeatedly over the past five years and it has failed repeatedly. It will fail again.
Greece is like Sisyphus, the king of Corinth who according to legend angered the gods and was condemned to push an enormous rock to the top of a hill. When Sisyphus neared the summit, the boulder would slip from his grasp and tumble back down to the bottom of the slope, forcing him to start again.
German Social Democrat MEP Axel Schäfer has welcomed the Greek reform list.
He calling it an “important development, because the government as well as the most important opposition parties have agreed on it.”
“That is to say, it needs new financial measures that can be paid back over a very very long timeframe.”
A group of pensioners have held a protest outside the Greek finance ministry this morning:
Tomorrow’s eurogroup meeting will be a clash between the countries who are determined to keep Greece in the euro, and those who are (or were) ready to see them leave:
Royal Bank of Scotland have divided up the teams:
My colleague Emma Graham-Harrison has rifled through the Greek newspapers, and reports:
“Tsipras has to measure himself against history, to choose a road that will lead either to salvation or tragedy.”
German politicians have been reacting through the morning to the Greek proposals, and all of them are voicing scepticism.
First up this morning on the state broadcaster ZDF’s Morgenmagazin programme, was Alexander Graf Lambsdorff, vice president of the European Parliament, and a member of Germany’s liberal FDP .
“for example there’s nothing in there about the roll of the Orthodox Church, which is after all, the biggest landowner in Greece. There’s little about reform of the financial authorities and that is a very decisive question, because whether you set the corporate tax at 26% or 28% is in the end not nearly so important as whether you actually collect it. That is the problem. Several important things are missing in this programme.”
“That’s precisely the point. That is the core issue here. And it is also the reason why we in the FDP say how can... a Tsipras government that allowed precisely this programme to be rejected by his people with 61%, now stand again in front of the people and credibly say: ‘we’re doing all of that afterall’ and then to credibly stand up on the international stage and say: ‘yes, we take ‘ownership’, as it’s called – we’ll take that on board as our responsibility and implement it’.
I’m missing the belief that a third bailout is possible.”
“He has Frau Merkel and Herr Schäuble precisely where he wants to have them...that might put pressure on them to give in, but I think that cannot possibly happen. A third bailout with a haircut in the Eurozone – that will not solve the Greek problems.”
Our Europe editor, Ian Traynor, points out that these austerity measures, although tough, are largely what was being demanded by creditors to unlock the final €7bn of Greece’s last bailout.
They’re could now unlock a three-year aid package instead:
So, what has Alexis Tsipras got for five months of deadlock, angst and the lockdown of his banking sector?
Well, he’s managed to get EU officials to take a hard look at Greece’s debt mountain, and consider measures to make them sustainable.
Greek MPs are expected to start debating this package of measures this evening, with a vote “very late” tonight:
Greek proposal to lenders & loan request to be examined by Parlt cttee at 3pm w debate to begin at 7pm + vote very late
As German politicians pore over the Greek proposals, some officials and economists are voicing scepticism about much of the Greek’s reform ideas, writes Kate Connolly from Berlin.
Michael Fuchs, deputy parliamentary floor leader of Merkel’s Christian Democrats, was quick to raise concerns.
“We have to be very careful because honestly, because I have a little bit of a problem to trust it because what is the difference between Sunday and today?
On Sunday the Greek people voted against these measurements.
“The Greeks are coming closer to the creditors. That was not to be expected after Sunday’s referendum. The markets are expecting a successful conclusion, as the appreciation of the Euro and the higher returns of German federal bonds shows”.
“Other than a few cosmetic improvements, the Greek government has presented the very same list of reforms which it advised its people to reject just a week ago.”
The Sunday crisis summit might yet be cancelled, reports our Europe editor Ian Traynor.
If, and it’s a big if, eurozone finance ministers give the thumbs-up on Saturday.
#greece if agreement sat on new deal, no need for sun summit - eu official
Newsflash: IMF chief Christine Lagarde, ECB president Mario Draghi, European Commission head Jean-Claude Juncker and Eurogroup president Jeroen Dijsselbloem are to discuss the Greek proposals at noon BST.
This is worrying - industrial output across Greece’s factories tumbled by 4% in May.
That suggests the country was falling deeper into recession even before the imposition of capital controls at the end of June.
Toll that Greek crisis is taking on economy evident in 4.0% y/y drop in industrial production in May; manufacturing down 2.7% y/y
Jeroen Dijsselbloem, president of the eurogroup of finance ministers, received Greece’s proposal overnight.
And he has suggested that the eurogroup could take a “major decision” on the Greek crisis on Saturday:
An influential Syriza MP, party secretary Dimitris Vitsas, has told Greek TV that he believes Tsipras’s party will stay united, if creditors commit to discussing debt relief this autumn.
Readers with a decent grasp of Greek can read the full proposals here, on the Athens parliament website.
There’s an English translation here on Naftemporiki.gr.
Greek bond yields are tumbling this morning, as investors deduce that Athens is less likely to default on its loans.
French president Francois Hollande has also called Greece’s proposals “serious and credible”, and a sign that Athens is determined to stay in the eurozone.
Greek parliament to begin debate at committee level at 3pm, BBG reports.
The French government is urging its fellow eurozone members to support Greece’s bailout proposal.
European affairs minister Harlem Desir told Radio Classique this morning that:
“It is a very significant moment for Greece, but also for Europe.
“The proposals which have been put forward are all serious, credible, comprehensive.”
Alexis Tsipras has met with MPs from his Syriza coalition in Athens.
“We are confronted with crucial decisions,”
We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us,but certainly not given a mandate to take Greece out of the eurozone.”
“We are all in this together.”
Tsipras trying to get backing from his MP's for reform proposals that are tougher than those rejected in last week's referendum.#Greece
TOTALLY CAVED IN --->TSIPRAS TELLS PARLIAMENTARY GROUP HE HAS MANDATE FOR BETTER DEAL, NOT TO TAKE GREECE OUT OF EUROZONE
Here’s the picture across Europe’s major stock markets, via Reuters:
In a strange turn of events considering the resounding ‘no’ cried out by the Greek people to austerity, Tsipras submitted a proposal to creditors on Thursday that contains around €13 billion in cuts and tax rises, €4 billion more than the plan the public rejected.
The concessions this reflects, especially on primary budget surpluses, VAT and pensions (i.e. all the ‘red lines’), and the swelling chances of a deal actually being made, is in no doubt the reason behind the robust early gains of the DAX and CAC.
From VAT rises to defence spending cuts, here’s a breakdown of what Greece ahs submitted to:
Another sign of market confidence: Money is flowing out of German government bonds this morning and into Italian debt.
SG: Mr Market assumes that Greek deal flies (for now). 10y Bund yields jump 8bps while 10y Italian ylds drop by 13bps pic.twitter.com/8gWZEXNmKd
The euro is rallying this morning too, up over half a cent against the US dollar in early trading.
What difference a day makes: #Euro gains, briefly touches $1.1135, Highest since Jul1 as overnight Greek proposal has rekindled deal hope.
European stock markets have jumped, as investors hail the news that Alexis Tsipras has submitted a new list of reforms to Greece’s creditors.
The French CAC leapt by 2.4%, the German DAX gained 1.6%, and in London the FTSE 100 is up 70 points or 1%.
The Greek public voted against austerity last Sunday, yet what we have seen is a giant step closer towards the Creditors’ prior proposal which was subsequently rejected, ironically by Tsipras.
There will be factions within the Greek parliament that simply won’t know what Tsipras is playing at, so when the Greek parliament vote on these measures today it is by no means a done deal.
Good morning, and welcome to our rolling coverage of the Greek bailout crisis.
Leonardo Da Vinci once scribbled in his notebook:
It is easier to resist at the beginning than at the end.Continue reading...
Debt restructuring has always been our aim in negotiations – but for some eurozone leaders Grexit is the goal
Greece’s financial drama has dominated the headlines for five years for one reason: the stubborn refusal of our creditors to offer essential debt relief. Why, against common sense, against the IMF’s verdict and against the everyday practices of bankers facing stressed debtors, do they resist a debt restructure? The answer cannot be found in economics because it resides deep in Europe’s labyrinthine politics.
In 2010, the Greek state became insolvent. Two options consistent with continuing membership of the eurozone presented themselves: the sensible one, that any decent banker would recommend – restructuring the debt and reforming the economy; and the toxic option – extending new loans to a bankrupt entity while pretending that it remains solvent.
Europe did not know how to respond to the financial crisis. Should it prepare for an expulsion (Grexit) or a federation?Continue reading...
Tom Hayes breaks down as he says admission to SFO was a ploy and that he had done nothing wrong but was being made a scapegoat to protect senior figures
Tom Hayes, the former trader on trial on interest rate-rigging charges, broke down in tears in a London court on Friday as he told the jury he had done nothing wrong.
A former yen derivatives trader at UBS and Citi, Hayes is the first person to stand trial over alleged manipulation of the London interbank offered rate (Libor). He has pleaded not guilty to eight counts of conspiracy to defraud between 2006 and 2010.Continue reading...
Greece could be cut loose and plunged into financial collapse if it fails to win over EU leaders at a weekend of summits to decide its fate
Greece faces its day of judgment on Saturday when eurozone countries must decide whether to open negotiations on a third multi-billion euro bailout for the insolvent country in five years – or whether it is cut loose and plunged into financial collapse.Continue reading...
Supermarket’s boss Dave Lewis is battling to improve morale and inspire fight back against discounters Aldi and Lidl
Tesco is promising to reward staff with a one-off “turnaround bonus” worth up to 5% of their salary if they hit sales and profit targets this year.
The potential payout in shares that staff would be able to cash in immediately is part of chief executive Dave Lewis’s effort to get Britain’s biggest retailer back on track after a slump in profits and sales as well as an accounting scandal which led to a profits mis-statement of more than £263m.Continue reading...
Social Democrats mostly support Alexis Tsipras’s latest plan, but the chancellor faces mutiny within her own conservative ranks over a third bailout for Greece
Germany’s ruling coalition appears to be deeply split over Greece’s latest reform proposals ahead of a climactic meeting of EU leaders at the weekend.
While senior Social Democrats (SPD), the junior partners in Chancellor Angela Merkel’s government, welcomed the list of concessions from the Greek prime minister, Alexis Tsipras, members of her own conservative bloc were scathing about Greece’s position.Continue reading...
People may think he’s mad, swapping volume business of Nissan for niche world of Aston, but Andy Palmer always wanted to be the boss and he’s got big plans
Andy Palmer was a successful senior executive at one of the biggest car companies in the world. He had no financial worries and was surrounded by the love of his family.
Life was good; but it wasn’t enough.Continue reading...
On the subdued streets of Athens, Greeks accept that their PM Alexis Tsipras had little choice but to make €13bn offering to creditors
Greeks who turned out in their millions to reject austerity last week seemed more resigned than angry on Friday about the government’s punishing last-minute offer to its creditors of €13bn of cuts and savings.Continue reading...
Last pit in Nottinghamshire closes, with the loss of hundreds of jobs, with owner UK Coal saying final mine in Yorkshire will shut later this year
The UK has been left with just one deep coal mine after the closure of the last pit in Nottinghamshire, with the loss of hundreds of jobs.
The closure of Thoresby colliery was announced last year after owner UK Coal fell into financial trouble.Continue reading...
"Tell the chef, the beer is on me."
"Basically the price of a night on the town!"
"I'd love to help kickstart continued development! And 0 EUR/month really does make fiscal sense too... maybe I'll even get a shirt?" (there will be limited edition shirts for two and other goodies for each supporter as soon as we sold the 200)