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| Version 13 | Version 14 |
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| Eurogroup meets on Greece bailout amid IMF tensions - live updates | Eurogroup meets on Greece bailout amid IMF tensions - live updates |
| (35 minutes later) | |
| 6.14pm BST | |
| 18:14 | |
| While we wait for progress at the Eurogroup, here are some more photos from today’s meeting. | |
| 5.37pm BST | 5.37pm BST |
| 17:37 | 17:37 |
| But... | But... |
| One of last-minute obstacles 4 review conclusion relates to #Greece PM announcement re creation of solidarity fund, acc to MNI (via @skaigr) | One of last-minute obstacles 4 review conclusion relates to #Greece PM announcement re creation of solidarity fund, acc to MNI (via @skaigr) |
| 5.28pm BST | 5.28pm BST |
| 17:28 | 17:28 |
| More optimism the Eurogroup’s talks will be constructive: | More optimism the Eurogroup’s talks will be constructive: |
| There are pending issues re 18 prior actions but not big enough to block disbursement, acc to official (via @capitalgr) #Eurogroup #Greece | There are pending issues re 18 prior actions but not big enough to block disbursement, acc to official (via @capitalgr) #Eurogroup #Greece |
| The story is here (in Greek). | The story is here (in Greek). |
| 5.00pm BST | 5.00pm BST |
| 17:00 | 17:00 |
| European markets end higher | European markets end higher |
| Stock markets appear to have come to terms with the prospect of a US interest rate rise, perhaps as early as next month. Indeed, the idea of the Federal Reserve hiking rates put financial shares in the spotlight, on the basis that dearer borrowing costs could boost their balance sheets. | Stock markets appear to have come to terms with the prospect of a US interest rate rise, perhaps as early as next month. Indeed, the idea of the Federal Reserve hiking rates put financial shares in the spotlight, on the basis that dearer borrowing costs could boost their balance sheets. |
| Meanwhile there was also optimism that a deal between Greece and its creditors could finally be reached at the Eurogroup meeting, despite tensions with the IMF over the country’s debt situation, thus releasing much needed bailout funds. | Meanwhile there was also optimism that a deal between Greece and its creditors could finally be reached at the Eurogroup meeting, despite tensions with the IMF over the country’s debt situation, thus releasing much needed bailout funds. |
| Another EU referendum survey showing the remain camp in the lead also helped support markets, as did another rise in the oil price. Tony Cross, market analyst at Trustnet Direct, said: | Another EU referendum survey showing the remain camp in the lead also helped support markets, as did another rise in the oil price. Tony Cross, market analyst at Trustnet Direct, said: |
| It’s been nothing short of a stellar day for the FTSE-100 as the market has shaken off earlier woes to forge a path higher, despite what could be construed as a raft of adversity. Public sector borrowing was higher than expected and Bank of England officials painted another gloomy picture over the economic outlook in their parliamentary appearance. The saving grace however appears to have been a combination of that latest Brexit survey data showing the Remain camp forging its way ahead, plus the fact that oil prices are evidently ascending, too. | It’s been nothing short of a stellar day for the FTSE-100 as the market has shaken off earlier woes to forge a path higher, despite what could be construed as a raft of adversity. Public sector borrowing was higher than expected and Bank of England officials painted another gloomy picture over the economic outlook in their parliamentary appearance. The saving grace however appears to have been a combination of that latest Brexit survey data showing the Remain camp forging its way ahead, plus the fact that oil prices are evidently ascending, too. |
| The final scores in Europe showed: | The final scores in Europe showed: |
| On Wall Street, the Dow Jones Industrial Average is currently up 215 points or 1.23%. | On Wall Street, the Dow Jones Industrial Average is currently up 215 points or 1.23%. |
| As for oil, Brent crude has climbed 0.54% to $48.61 a barrel. | As for oil, Brent crude has climbed 0.54% to $48.61 a barrel. |
| 3.56pm BST | 3.56pm BST |
| 15:56 | 15:56 |
| Schaeuble looking surprisingly happy... pic.twitter.com/U2G5RbDWXS | Schaeuble looking surprisingly happy... pic.twitter.com/U2G5RbDWXS |
| 3.45pm BST | 3.45pm BST |
| 15:45 | 15:45 |
| Here’s AP’s summary of the comments ahead of the Eurogroup meeting on Greece: | Here’s AP’s summary of the comments ahead of the Eurogroup meeting on Greece: |
| The eurozone’s top official expressed optimism Tuesday that Greece’s creditors will approve its reform efforts, paving the way for the payout of a new batch of rescue loans that would keep Athens from defaulting on its massive debts this summer. | The eurozone’s top official expressed optimism Tuesday that Greece’s creditors will approve its reform efforts, paving the way for the payout of a new batch of rescue loans that would keep Athens from defaulting on its massive debts this summer. |
| “I hope that there is full agreement between the institutions, that we can move on in the program,” said Jeroen Dijsselbloem, the head of the eurogroup of finance ministers, as he arrived for the talks in Brussels. | “I hope that there is full agreement between the institutions, that we can move on in the program,” said Jeroen Dijsselbloem, the head of the eurogroup of finance ministers, as he arrived for the talks in Brussels. |
| Greece’s parliament passed a bill over the weekend on a series of measures that creditors had demanded. They included tax hikes, more budget-cutting reforms and a new privatization superfund, which will manage almost all state property. | Greece’s parliament passed a bill over the weekend on a series of measures that creditors had demanded. They included tax hikes, more budget-cutting reforms and a new privatization superfund, which will manage almost all state property. |
| The next step for creditors would be to find a way to lighten the country’s debt load, which mainly consists of past rescue loans from eurozone states. Greece’s debt is predicted to reach more than €333bn this year, around 180% of its annual economic output. | The next step for creditors would be to find a way to lighten the country’s debt load, which mainly consists of past rescue loans from eurozone states. Greece’s debt is predicted to reach more than €333bn this year, around 180% of its annual economic output. |
| “Greece needs room to breathe, it needs certainty. It’s made considerable efforts, and again this weekend,” said French Finance Minister Michel Sapin, referring to the reforms Greece passed. | “Greece needs room to breathe, it needs certainty. It’s made considerable efforts, and again this weekend,” said French Finance Minister Michel Sapin, referring to the reforms Greece passed. |
| On the question of debt relief, Dijsselbloem said there was no appetite for any outright cut to the value of the money Greece owes. | On the question of debt relief, Dijsselbloem said there was no appetite for any outright cut to the value of the money Greece owes. |
| Rather, the creditors are likely to examine a possible lowering in the interest rates and possibly an extension of the rescue loans’ maturity dates, as called for by the International Monetary Fund. There are fears the IMF may even pull out of the bailout program if Greece’s debt burden is not lightened. | Rather, the creditors are likely to examine a possible lowering in the interest rates and possibly an extension of the rescue loans’ maturity dates, as called for by the International Monetary Fund. There are fears the IMF may even pull out of the bailout program if Greece’s debt burden is not lightened. |
| “An actual haircut of the loans will not happen,” Dijsselboem said. “What we can look at is the annual debt burden, so Greece can on an annual basis pay its debts. If not, we are ready to help them in the coming years.” | “An actual haircut of the loans will not happen,” Dijsselboem said. “What we can look at is the annual debt burden, so Greece can on an annual basis pay its debts. If not, we are ready to help them in the coming years.” |
| Senior EU officials believe the plans being drawn up by experts to address Greece’s short, mid- and longer-term debt needs will be enough to keep the IMF on board. | Senior EU officials believe the plans being drawn up by experts to address Greece’s short, mid- and longer-term debt needs will be enough to keep the IMF on board. |
| “There is a real added value to have the IMF on board, so it is not an option to go on without the IMF,” Dijsselbloem said. | “There is a real added value to have the IMF on board, so it is not an option to go on without the IMF,” Dijsselbloem said. |
| 3.09pm BST | 3.09pm BST |
| 15:09 | 15:09 |
| Wall Street opens sharply higher | Wall Street opens sharply higher |
| US investors have followed their European counterparts and moved back into the stock market, with continuing talk about an imminent Federal Reserve rate rise helping to lift financial stocks. | US investors have followed their European counterparts and moved back into the stock market, with continuing talk about an imminent Federal Reserve rate rise helping to lift financial stocks. |
| The Dow Jones Industrial Average is currently up 187 points or just over 1%, while the S&P 500 has added 0.7% and Nasdaq is 0.85% better. | The Dow Jones Industrial Average is currently up 187 points or just over 1%, while the S&P 500 has added 0.7% and Nasdaq is 0.85% better. |
| In Europe, Germany’s Dax is 1.8% higher while France’s Cac has climbed 2%. The FTSE 100 is up 70 points or 1.1%. | In Europe, Germany’s Dax is 1.8% higher while France’s Cac has climbed 2%. The FTSE 100 is up 70 points or 1.1%. |
| But as the Eurogroup meets to try and resolve the Greek debt situation, the Athens market has slipped 1.27%. | But as the Eurogroup meets to try and resolve the Greek debt situation, the Athens market has slipped 1.27%. |
| 2.51pm BST | 2.51pm BST |
| 14:51 | 14:51 |
| Back with Mark Carney, and here’s our report on the Bank of England governor’s appearance at the Treasury select committee: | Back with Mark Carney, and here’s our report on the Bank of England governor’s appearance at the Treasury select committee: |
| Related: Bank of England governor rejects accusations of bias over EU referendum | Related: Bank of England governor rejects accusations of bias over EU referendum |
| 2.44pm BST | 2.44pm BST |
| 14:44 | 14:44 |
| More comments made ahead of the Eurogroup meeting which should now be well underway: | More comments made ahead of the Eurogroup meeting which should now be well underway: |
| Michael Noonan of Ireland is expecting agreement on disbursement for #Greece today, plus detailed discussion on debt relief roadmap. | Michael Noonan of Ireland is expecting agreement on disbursement for #Greece today, plus detailed discussion on debt relief roadmap. |
| And Eurogroup president Jeroen Dijsselbloem: | And Eurogroup president Jeroen Dijsselbloem: |
| Greek bailout without IMF 'not an option,' says Dijsselbloem https://t.co/H9gHXAFsSI pic.twitter.com/tsCi8BCUMr | Greek bailout without IMF 'not an option,' says Dijsselbloem https://t.co/H9gHXAFsSI pic.twitter.com/tsCi8BCUMr |
| 2.34pm BST | 2.34pm BST |
| 14:34 | 14:34 |
| The International Monetary Fund is using its negotiating position to try and persuade the Eurogroup to make concessions in the Greek debt crisis, says the Centre for Economics and Business Research, and this may be its best chance to push its point of view. | The International Monetary Fund is using its negotiating position to try and persuade the Eurogroup to make concessions in the Greek debt crisis, says the Centre for Economics and Business Research, and this may be its best chance to push its point of view. |
| But Cebr economist Danae Kyriakopoulou said: | But Cebr economist Danae Kyriakopoulou said: |
| Cebr warns against premature optimism that today’s meeting will mark ‘the end of the Eurozone crisis’. IMF policy is determined by its shareholders (represented by the board), rather than its staff. Politics matter much more to the former. And there is little enthusiasm in Germany for debt relief which would be hard to sell to the country’s voters. | Cebr warns against premature optimism that today’s meeting will mark ‘the end of the Eurozone crisis’. IMF policy is determined by its shareholders (represented by the board), rather than its staff. Politics matter much more to the former. And there is little enthusiasm in Germany for debt relief which would be hard to sell to the country’s voters. |
| On the other hand the Eurogroup will be unwilling to risk a crisis that could break up the Euro in the run-up to the UK Brexit vote on 23 June and the Spanish elections on 26 June, so arguably today’s meeting is the IMF’s best chance to use its negotiating power to force the concessions it believes are necessary. | On the other hand the Eurogroup will be unwilling to risk a crisis that could break up the Euro in the run-up to the UK Brexit vote on 23 June and the Spanish elections on 26 June, so arguably today’s meeting is the IMF’s best chance to use its negotiating power to force the concessions it believes are necessary. |
| The Cebr sees two ways the situation could develop: | The Cebr sees two ways the situation could develop: |
| 1. The IMF backs off and avoids confrontation with the Europeans. This would continue the “extend and pretend” strategy that has governed the Greek crisis since it started. This would most certainly be bad for the Greek economy, as the IMF staff’s projections show. And, it could prove very damaging to Europe as it raises the likelihood of a default and Grexit further down the line – meaning that debt owed to European taxpayers (including in the UK) would never be repaid. | 1. The IMF backs off and avoids confrontation with the Europeans. This would continue the “extend and pretend” strategy that has governed the Greek crisis since it started. This would most certainly be bad for the Greek economy, as the IMF staff’s projections show. And, it could prove very damaging to Europe as it raises the likelihood of a default and Grexit further down the line – meaning that debt owed to European taxpayers (including in the UK) would never be repaid. |
| 2. The IMF plays hardball and poses a painful dilemma to the Europeans. This would certainly be risky. A failure to agree could lead to another Eurozone crisis, possibly a Grexit. But it is in everyone’s interest that this is avoided. The debt relief itself need not take the form of an outright haircut. Some form of reprofiling, as outlined in the IMF’s DSA could do the trick. This would put the Greek economy on a more sustainable trajectory but would be costly politically to Eurozone leaders and may lead to political instability in the already-troubled union. | 2. The IMF plays hardball and poses a painful dilemma to the Europeans. This would certainly be risky. A failure to agree could lead to another Eurozone crisis, possibly a Grexit. But it is in everyone’s interest that this is avoided. The debt relief itself need not take the form of an outright haircut. Some form of reprofiling, as outlined in the IMF’s DSA could do the trick. This would put the Greek economy on a more sustainable trajectory but would be costly politically to Eurozone leaders and may lead to political instability in the already-troubled union. |