Greece has submitted its bailout plan to the European Union (EU) leaders late on Thursday night. Alexis Tsipras, Prime Minister, Greece has asked for a three-year bailout and a sum of 53 billion euros from the Union.
Greece has submitted its bailout plan to the European Union (EU) leaders late on Thursday night. Alexis Tsipras, Prime Minister, Greece has asked for a three-year bailout and a sum of 53 billion euros from the Union.
In its latest proposals, Greece has asked for 53.5 billion euros ($59.47 billion) to help cover its debts until 2018, a review of primary surplus targets and "reprofiling" the country's long-term debt.
he plan, although, looks similar to the one that became the bone of contection in June and led to Tsipras calling for a referendum which outrightly rejected the plan.
You can read the story here.
11:01 IST Saturday, 11 July 2015
A backgrounder of events so far:
Greece's parliament backed the government's reform plan containing austerity measures to win a third bailout early today, but with the government suffering significant losses from dissenting lawmakers.
The motion, which sought to authorise the government to use the proposal as a basis for negotiation with international creditors during the weekend, passed with 251 votes in favour, 32 against and 8 voting 'present' -— a form of abstention -— in the 300-member parliament.
Those who voted 'present' or were absent, as well as two of those who voted against, were members of Prime Minister Alexis Tsipras' left-wing Syriza party -- raising questions about the stability of his government.
The dissenters included two ministers -- Panagiotis Lafazanis who holds the energy portfolio and Dimitris Stratoulis who holds the social security portfolio -- and prominent party member and Parliament Speaker Zoe Konstantopoulou.
"I support the government but I don't support an austerity program of neoliberal deregulation and privatisations which ... would prolong the vicious circle of recession, poverty and misery," Lafazanis said in a statement released to the press explaining his "radical and categorical" objection to the proposal.
Former finance minister Yanis Varoufakis, who resigned this week, was absent for family reasons, saying on Twitter he was spending the weekend with his daughter who was visiting from Australia. Although he sent a letter saying he would have voted in favour had he been present, it could not be counted among the 'yes' votes under parliamentary rules.
All opposition parties except the Nazi-inspired Golden Dawn and the Communist Party voted in favour.
The proposed measures, including tax hikes and cuts in pension spending, are certain to inflict more pain on a Greek public who just days ago voted overwhelmingly against a similar plan.
But the new proposal, if approved by Greece's international creditors, will provide longer-term financial support for a nation that has endured six years of recession.
Without a deal, Greece faces the immediate prospect of crashing out of Europe's joint currency, the euro. It would be the first nation to do so.
If the proposal is approved, Greece would get a three-year loan package worth nearly %60 billion (53.5 billion euros) as well as some form of debt relief. That is far more than the 7.2 billion euros left over from Greece's previous bailout that had been at stake in the country's five-month negotiations until last month. (AP)
10:29 IST Saturday, 11 July 2015
Greek Prime Minister Alexis Tsipras (L) is congratulated by lawmakers after a voting session at the Parliament in Athens, Greece, July 11, 2015.The Greek parliament voted overwhelmingly on Saturday in favour of authorizing the left-wing government of Tsipras to negotiate with international creditors on the basis of a reform programme unveiled this week. Reuters.
10:13 IST Saturday, 11 July 2015
Some comments made by the new Greek Finance Minister Euclid Tsakalotos defending the new bailout plan that Greece submitted.
He said that the government understands that the agreement is a very difficult one but it always has a cost. He defends the measures in the new plan and says that boosting tax collection will help Greece generate revenues which could be used for the betterment of the economy.
Tsakalotos stressed that the gains made from this bailout plan wil go to the middle and lower income households. He said that despite the pressure from the IMF and Germany, the government has not introduced any recessionary measures in the new plan.
9:56 IST Saturday, 11 July 2015
White House says welcomes latest reform proposal by Greece
The White House said on Friday it welcomed the latest proposal by Greece to resolve its debt crisis and that it was something for that country's creditors to weigh.
"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," White House spokesman Josh Earnest said.
9:55 IST Saturday, 11 July 2015
Greece expects 'many' of its debt demands will be accepted
AFP reports that Greek Finance Minister Euclid Tsakalotos said believed "many" of his country's demands for debt relief will be accepted by eurozone partners, which are weighing a bailout proposal.
"Many of Greece's debt demands are going to be accepted," he told a parliamentary commission examining the plan.
He notably expressed confidence that Greece will be permitted to roll over a debt of 27 billion euros (USD 30 billion) in bonds held by the European Central Bank to the European Stability Mechanism, which would push back repayments.
Greece has submitted a proposal of reforms it will undertake if its creditors provide it with a third bailout to stave off economic collapse.
Much of the package consists of concessions to the creditors, especially on taxes and cutting pension costs.
Athens is hoping it will pave the way to easing servicing of its massive 323-billion-euro debt mountain, which it says is unsustainable.
9:24 IST Saturday, 11 July 2015
A lot of developments over the past 12 hours.
EU, IMF experts give positive assessment of Greek bailout request
The European Commission, European Central Bank and the International Monetary Fund have given a positive assessment of the Greek government's request to start negotiations on a new bailout, a person close to the
matter said on Friday.
The three institutions were asked by the ESM bailout fund to review proposals for economic reforms made by Greece on Thursday. Based on their recommendations, the Eurogroup of euro zone finance ministers is to decide whether to open negotiations at a meeting in Brussels starting at 1300 GMT on Saturday.
Greek PM Tsipras defends "difficult" choices over bailout
After making a literal u-turn and accepting most of the creditors' demands, Prime Minister Alexis Tsipras defended the painful bailout proposals his leftwing government presented to parliament on Friday, saying they were difficult measures but would help keep Greece in the euro zone.
Arguing that the mix of tax hikes and spending cuts was better on many points than the package rejected by voters in a referendum on Sunday, Tsipras insisted that he had won important concessions on restructuring Greece's enormous public debt.
"For the first time, we have on the table a substantial discussion for a debt restructuring," he said in a debate before parliament votes on endorsing the proposals.
19:14 IST Friday, 10 July 2015
Greek main opposition authorises PM to reach deal with creditors
Greece's main opposition conservatives said on Friday they would back the leftist government of Alexis Tsipras to secure a cash-for reforms deal with the country's international creditors that will keep the
country within the euro zone.
Lawmakers are due to vote later on Friday on proposals presented to Greece's creditors which include measures to raise taxes, introduce a raft of privatisations and cut public spending in areas such as defence.
"The New Democracy party gives the prime minister not only the authorisation to reach an agreement, but also the mandate to avoid the country's exit from Europe and the euro," the party said in a statement.
18:56 IST Friday, 10 July 2015
More rhetoric. While parties in Germany are split over the Greek bailout plans with Social Democrats welcomed the concessiona made by Tsipras but many other are questioning whether the Greek PM could be trusted with coming through with the promises. This shows the tight rope that German Chancellor Angela Merkel will have to walk through. She has a balance to maintain and it is proving out to be a very delicate one.
Meanwhile, Russian President Vladimir Putin has taken a potshot at EU. He has asked where was the Euopean Bloc when problems in Greece were accumulating. Although, he said that Athens hasn't approached Moscow for help but Russia has been sending mixed signals on this subject for quite sometime.
France has been sympathetic to Greece and has called the bailout offer from Greece as serious and credible. Italy, too, seems to be in support of the new offer.
18:02 IST Friday, 10 July 2015
This is getting interesting.
Greek's centrist party To Potami has said that it will back the government in Friday's vote on reforms package but the five hardline leftists in Tsipras' ruling Syriza party say they prefer Greece to exit Eurozone. They said Grexit is preferable than dealing with austerity and without debt relief.
16:44 IST Friday, 10 July 2015
16:38 IST Friday, 10 July 2015
The EU meeting to discuss the Greek bailouit plan is beginning soon. Being on the subject of Grexit and its likelihood, the betting market shows that the odds are at their lowest. Reuters report that the chances Greece will leave the euro zone this year fell on Friday, according to bookmakers' odds, with one firm saying the likelihood is now lower than at any time this year.
Optimism that the country will stay in the 19-nation bloc for the remainder of 2015 has risen after the Greek government submitted last-minute reform proposals to its creditors, proposals which French President Francois Hollande said were "serious and credible".
15:35 IST Friday, 10 July 2015
Greek prime minister Alexis Tsipras is applauded by lawmakers before addressing his parliamentary group meeting at the Greek Parliament in Athens on July 10, 2015. Lawmakers in Greece are to vote whether to back a last-ditch reform plan the government submitted to creditors overnight in a bid to stave off financial collapse and exit from the eurozone.
14:56 IST Friday, 10 July 2015
It's all happening! Sources say that Juncker, Draghi, Lagarde and Dijsselbloem to meet in two and half hours to discuss the Greek plan.
European Commission President Jean-Claude Juncker, European Central Bank President Mario Draghi, International Monetary Fund Christine Lagarde and Eurogroup finance ministers' chairman Jeroen Dijsselbloem will make a first assessment of the plans sent to Brussels late on Thursday by the Greek government, the sources said.
If the assessment is positive, a euro zone summit on Sunday could recommend starting negotiations with Athens on a new three-year bailout programme and releasing some bridging funds once it enacts key immediate reforms.
14:40 IST Friday, 10 July 2015
This is what Stathis Kalyvas, professor of Political Science, Yale has to say:
14:32 IST Friday, 10 July 2015
And now Eurogroup's president Dijsselbloem, who himself will be fighting to retain his post next week, has said that a decision on Greek plan is possible tomorrow. He said a "major decision" is possible. He called the plan a"thorough text". What does that mean?
Also, French Economy Minister Macron said that he was reasonably optimistic that a deal would now be reached. He said this at a conference in Madrid.
14:20 IST Friday, 10 July 2015
Jokes begin to do rounds as deal becomes more likely. Here's one that we like!
14:13 IST Friday, 10 July 2015
Reports are coming in that French President Hollande has liked Greek bailout plans. He has been quoted as saying that the plans are "credible". Does this mean that Greece will remain in Eurozone? All eyes on tough Merkel now.
14:05 IST Friday, 10 July 2015
European shares jump on hopes of Greek debt deal
Looks like European markets are hopeful that the Greek bailout plan will find acceptance in Europe. European stocks surged on Friday after Greece made substantial concessions in its latest bid to win new funds from creditors and avert bankruptcy.
The pan-European FTSEurofirst 300 was up 1.6% at 1,535.94 points by 0757 GMT, with the euro zone blue-chip Euro STOXX 50 rising 2.7%.
The VSTOXX, a volatility index for European shares, fell 2.1 points to 28.6, its lowest level so far this month.
13:56 IST Friday, 10 July 2015
French economy minister says reasonably confident about Greek deal
As reported earlier and now with the full comment, French Economy Minister Emmanuel Macron said he was reasonably optimistic that Greece would reach an aid-for-reforms deal with its creditors. Speaking to journalists during a visit to Madrid, he also said major advances had occurred in recent days and that a discussion about Greece's debt burden was needed.
13:55 IST Friday, 10 July 2015
Peter Spiegel, Brussels bureau chief of Financial Times, questions whether Merkel will trust Tsipras to implement what he is promising.
13:44 IST Friday, 10 July 2015
Meanwhile, comments made by French Economy Minister Macron shows that a deal may just be possible. He said that major advances have been made over Greece debt talks in recent days.
13:38 IST Friday, 10 July 2015
Greek Prime Minister Alexis Tsipras is greeted as he arrives for a session of ruling Syriza`s leftist party parliamentary group at the Parliament building in Athens, Greece July 10, 2015. The Greek parliament will give the government a mandate to negotiate with creditors for a cash-for-reforms deal, the parliamentary spokesman of the ruling Syriza party told reporters on Friday. Reuters.
13:31 IST Friday, 10 July 2015
Merkel ally says hard to trust latest Greek reform proposals
A senior member of German Chancellor Angela Merkel's party said on Friday he had trouble trusting Greece's latest proposals to its euro zone creditors as the country had last week decisively rejected the austerity
measures in a referendum.
The Greek government sent a package of reform proposals to its euro zone creditors on Thursday in a race to win new funds to avert bankruptcy and will seek a parliamentary vote on Friday to endorse immediate actions.
"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," Michael Fuchs, deputy parliamentary floor leader of Merkel's Christian Democrats, told BBC Radio in English.
"We need to make sure that the debt sustainability is now served, if that is not functioning it doesn't make sense."
12:59 IST Friday, 10 July 2015
European shares jump after Greek proposal boosts chances of debt deal
European stocks surged at the open on Friday after Greece submitted fresh reform proposals to its euro zone creditors, making substantial concessions in a bid to win new funds and avert bankruptcy.
The pan-European FTSEurofirst 300 was up 1.5% at 1,533.63 points by 0706 GMT, with the euro zone blue-chip Euro STOXX 50 rising 2.2%.
Greece has asked for 53.5 billion euros ($59 billion) to help cover its debts until 2018, but has pledged new tax hikes in return.
Traders said that the latest reform plan had made investors cautiously optimistic that a deal could be struck by Sunday's deadline.
"The proposals appear to offer additional concessions from Greece on the key issues that have stalled negotiations this year," said Craig Erlam, senior market analyst at OANDA.
"(The proposals) could offer a platform on which a deal could be agreed this weekend."
12:56 IST Friday, 10 July 2015
Greek PM says does not have mandate to exit eurozone
Greek Prime Minister Alexis Tsipras appealed to his Syriza lawmakers on Friday to back a fiscal plan in return for aid from creditors, a government official said, in a last-ditch attempt to stave off financial meltdown.
Tsipras is seeking approval from Syriza for a government blueprint of reforms in return for new aid from international creditors.
"We are confronted with crucial decisions," a government official quoted Tspiras telling lawmakers. "We got a mandate to bring 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."
12:53 IST Friday, 10 July 2015
Senior German conservatives sceptical of Greek reform proposals
Germany, as usual, is doubtful of the Greek bailout plans. Reuters report that senior German conservatives expressed doubts on Friday about the seriousness of new proposals put forward by the Greek government in its race to win new funds to avert bankruptcy and a possible exit from the euro zone.
"How believable is it that this reform list will be implemented?" asked Ralph Brinkhaus, deputy parliamentary floor leader for Chancellor Angela Merkel's conservatives, on ZDF television.
Another senior conservative, Hans-Peter Friedrich, told Deutschlandfunk radio: "Either the Greek government is tricking its own people or (it is tricking) us again."
Asked if he would back such a package, Brinkhaus said: "We will look very calmly at the whole package that is presented to us in the coming days."
"Beforehand there are no 'what if' comments to be made, but I repeat: a debt haircut is always problematic because if Greece gets a debt haircut then one has to ask, 'why have other countries that have implemented reforms -- like Cyprus, like Portugal, like Spain or like Ireland -- not been granted this debt haircut?'"
12:52 IST Friday, 10 July 2015
Greek interior minister says optimistic of a 'good' agreement
Greek Interior Minister Nikos Voutsis said on Friday he was optimistic the country could clinch a "good agreement" on terms of a bailout package submitted to creditors on Thursday night.
"We are optimistic of a very good agreement. We will discuss it and I'm optimistic all will go well," Voutsis told journalists ahead of a meeting of lawmakers from the ruling Syriza party in parliament.
12:48 IST Friday, 10 July 2015
Reuters report:
Greek parliament will back reform negotiations
The Greek parliament will give the government a mandate to negotiate with creditors for a cash-for-reforms deal, the parliamentary spokesman of the ruling Syriza party told reporters on Friday.
Prime Minister Alexis Tsipras has called a snap vote in parliament on Friday asking for its backing to negotiate a list of "prior actions" -- measures his government would take to convince creditors of its intent for an aid deal.
Asked if there would be a deal, Nikos Filis told journalists: "Certainly. Today we are speaking in parliament."
(With Reuters)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}