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Greek PM to hold cabinet meeting to discuss bailout - live updates Greek PM to hold cabinet meeting to discuss bailout - live updates
(35 minutes later)
Helena Smith
Over in Athens opposition MPs are also saying that they are hearing a cabinet meeting will take place later today so that prime minister Alexis Tsipras can “sound out” his party.
“I think Tsipras is now facing his toughest choice. Is he going to take a deal or leave a deal?” Anna Asimakopoulos, a shadow finance minister with the main opposition New Democracy party, has just told the Guardian.
“Even the deal he has put on the table is really stretching it for people in his party, while the deal lenders have put on the table is impossible for him to defend.
“What he is clearly doing now is sounding out his own people - if there is any possibility he can get the deal [proposed by creditors] through, he will stretch it out. If not, his only other option is elections.”
Fresh polls, she argued, would take at least 27 days to prepare for.
“First the government would have to disassemble, then constitutionally we would need another 21 days until elections are held.”
These posters everywhere in Athens - translates "YOLO - we deserve more" pic.twitter.com/4IossSiYJa
Sleep deflation: Juncker just said he had two hours sleep. He said this morning he'd had threeSleep deflation: Juncker just said he had two hours sleep. He said this morning he'd had three
EC president Jean-Claude Juncker has been fielding calls from Angela Merkel, as he tries to play peacemaker between Greece and its more hard-line creditors....EC president Jean-Claude Juncker has been fielding calls from Angela Merkel, as he tries to play peacemaker between Greece and its more hard-line creditors....
JUNCKER: WE MADE SOME PROGRESS LAST NIGHT WITH GREECE, NOT SUFFICIENTJUNCKER: WE MADE SOME PROGRESS LAST NIGHT WITH GREECE, NOT SUFFICIENT
Juncker says he 'just had the German Chancellor on the phone', will speak to Hollande laterJuncker says he 'just had the German Chancellor on the phone', will speak to Hollande later
Eurogroup president Jeroen Dijsselbloem has just weighed in, telling Reuters in Amsterdam that there are still “quite large” differences between the two sides.Eurogroup president Jeroen Dijsselbloem has just weighed in, telling Reuters in Amsterdam that there are still “quite large” differences between the two sides.
Last night’s meeting, which he attended, was “successful in narrowing down the remaining issues”, Dijsselbloem added.Last night’s meeting, which he attended, was “successful in narrowing down the remaining issues”, Dijsselbloem added.
He expects Greece to present alternative options within days.He expects Greece to present alternative options within days.
Just to clarify the point about VAT....Just to clarify the point about VAT....
Lenders want the Greek government to lift the current exemptions on VAT (where the top rate is 23%). This includes, food, medicines and electricity, says Helena, for which VAT currently stands at just 6%.Lenders want the Greek government to lift the current exemptions on VAT (where the top rate is 23%). This includes, food, medicines and electricity, says Helena, for which VAT currently stands at just 6%.
Reuters is also reporting that creditors are demanding VAT hikes and pension cuts.Reuters is also reporting that creditors are demanding VAT hikes and pension cuts.
They’ve also heard that the IMF/ECB/EC proposal forces Athens to continue with pension reforms, which will hit the poorest pensioners, and press on with privatisations.They’ve also heard that the IMF/ECB/EC proposal forces Athens to continue with pension reforms, which will hit the poorest pensioners, and press on with privatisations.
In return, funds totalling €10.9bn would be unlocked to tide Greece through the summer:In return, funds totalling €10.9bn would be unlocked to tide Greece through the summer:
Helena SmithHelena Smith
We are hearing that the following will be the focus of the emergency Greek cabinet meeting expected to take place later today:We are hearing that the following will be the focus of the emergency Greek cabinet meeting expected to take place later today:
VAT rates being increased to 11% and 23% in bid to raise internal revenue of €1.8bn in 2015. Both would have a crippling effect on energy bills, restaurants and pharmacies.VAT rates being increased to 11% and 23% in bid to raise internal revenue of €1.8bn in 2015. Both would have a crippling effect on energy bills, restaurants and pharmacies.
Cuts in social security system amounting to 1% of GDP this year alone which would hugely effect pensions - a red line for the leftistsCuts in social security system amounting to 1% of GDP this year alone which would hugely effect pensions - a red line for the leftists
Primary surplus targets of: 1% in 2015; 3% in 2016 and 3.5% in 2018 Primary surplus targets of: 1% in 2015; rising to 3% in 2017 and 3.5% in 2018
Our correspondent Helena Smith is hearing that prime minister Alexis Tsipras is preparing to hold an “emergency” cabinet meeting to discuss the latest developments - possibly as early as this afternoon.Our correspondent Helena Smith is hearing that prime minister Alexis Tsipras is preparing to hold an “emergency” cabinet meeting to discuss the latest developments - possibly as early as this afternoon.
Media with close ties to the governing far left Syriza are reporting that Greece is as close as it has ever come to rupture.Media with close ties to the governing far left Syriza are reporting that Greece is as close as it has ever come to rupture.
“On the verge of rift,” the government-friendly Syntakton newspaper proclaimed on its front page saying the “problematic proposal” made by creditors was “impossible to sign.”“On the verge of rift,” the government-friendly Syntakton newspaper proclaimed on its front page saying the “problematic proposal” made by creditors was “impossible to sign.”
The well-informed portal, Newsit, argues that Greece’s lenders must offer Athens some concessions:The well-informed portal, Newsit, argues that Greece’s lenders must offer Athens some concessions:
“If lenders don’t make a u-turn and retreat to softer positions, rupture is at this moment appearing as the most likely scenario, even if the government will try right up until the end to secure a ‘mutually beneficial solution,’”“If lenders don’t make a u-turn and retreat to softer positions, rupture is at this moment appearing as the most likely scenario, even if the government will try right up until the end to secure a ‘mutually beneficial solution,’”
Newsit adds:Newsit adds:
“The prime minister and his close associates are returning to Athens with their luggage much heavier because of the lenders’ proposal, and with all scenarios on a political level now open.”“The prime minister and his close associates are returning to Athens with their luggage much heavier because of the lenders’ proposal, and with all scenarios on a political level now open.”
Elections, it is said, could take place on the last Sunday of June (28th) or the first Sunday of July.Elections, it is said, could take place on the last Sunday of June (28th) or the first Sunday of July.
A meeting of political party leaders might also be called in the coming days.A meeting of political party leaders might also be called in the coming days.
Over in Athens news of the measures now being demanded by creditors has been received with the force of a lead balloon, with government MPs and the opposition leader voicing deep concerns.Over in Athens news of the measures now being demanded by creditors has been received with the force of a lead balloon, with government MPs and the opposition leader voicing deep concerns.
Our correspondent Helena Smith reports:Our correspondent Helena Smith reports:
It is not only the government that has reacted with thinly veiled-violence to the five-page draft agreement revealed by European president jean Claude Juncker last night. The former prime minister Antonis Samaras, whose ‘pro-bailout’ centre right New Democracy party was ousted from power in January, has also called the proposed plan a disaster, describing the measures put forward by lenders as far more onerous than any his own government had been asked to apply.It is not only the government that has reacted with thinly veiled-violence to the five-page draft agreement revealed by European president jean Claude Juncker last night. The former prime minister Antonis Samaras, whose ‘pro-bailout’ centre right New Democracy party was ousted from power in January, has also called the proposed plan a disaster, describing the measures put forward by lenders as far more onerous than any his own government had been asked to apply.
Reacting to the latest twist in Greece’s stand-off with creditors, the main opposition leader derided the anti-austerity coalition’s negotiating tactics.Reacting to the latest twist in Greece’s stand-off with creditors, the main opposition leader derided the anti-austerity coalition’s negotiating tactics.
“The proposed measures, as government ministers themselves accept, are much harsher than the measures of Hardouvelis,” Samaras said referring to his own former finance minister, Gikas Hardouvelis.“The proposed measures, as government ministers themselves accept, are much harsher than the measures of Hardouvelis,” Samaras said referring to his own former finance minister, Gikas Hardouvelis.
“The total cost [of Greece under Tsipras] is quite clearly huge, not only in VAT, electricity, the private domaine, etc but primarily in credibility. The deceit and lies are over.”“The total cost [of Greece under Tsipras] is quite clearly huge, not only in VAT, electricity, the private domaine, etc but primarily in credibility. The deceit and lies are over.”
Several leading Syriza cadres today suggested that the only way out would be through fresh elections - or putting the deal to public vote via a referendum.Several leading Syriza cadres today suggested that the only way out would be through fresh elections - or putting the deal to public vote via a referendum.
Describing the lenders’ draft agreement as “most brazen and provocative,” the deputy social security minister, Dimitris Stratoulis, insisted this morning that though debt-stricken and insolvent, Greece still had “alternatives solutions.”Describing the lenders’ draft agreement as “most brazen and provocative,” the deputy social security minister, Dimitris Stratoulis, insisted this morning that though debt-stricken and insolvent, Greece still had “alternatives solutions.”
Stratoulis argued:Stratoulis argued:
“If they don’t back down, the country won’t be lost, it has alternatives solutions and democratic ways out that the people could have a place in ... there are alternatives that would cost less that our signing a disgraceful and dishonourable agreement.”“If they don’t back down, the country won’t be lost, it has alternatives solutions and democratic ways out that the people could have a place in ... there are alternatives that would cost less that our signing a disgraceful and dishonourable agreement.”
But Samaras said fresh elections would be catastrophic for the crisis-plagued country. He said:But Samaras said fresh elections would be catastrophic for the crisis-plagued country. He said:
“This nonsense about elections has to end because elections today would happen under very harsh and unfavourable conditions for Greeks. Let alone that they would bring us to an even worse point than the one we find ourselves in today.“This nonsense about elections has to end because elections today would happen under very harsh and unfavourable conditions for Greeks. Let alone that they would bring us to an even worse point than the one we find ourselves in today.
And anyway what would Syriza be looking for, to get a mandate from the people to take us to the drachma? Unless that, from the start, was their real aim.”And anyway what would Syriza be looking for, to get a mandate from the people to take us to the drachma? Unless that, from the start, was their real aim.”
The former prime minister, whose party is lagging far behind Syriza in the polls, reiterrated that national consensus was the only way forward for a nation that has repeatedly said it does not want to exit the euro.The former prime minister, whose party is lagging far behind Syriza in the polls, reiterrated that national consensus was the only way forward for a nation that has repeatedly said it does not want to exit the euro.
Samaras concluded:Samaras concluded:
“The only way out that has remained for Mr Tsipras is to settle on the big national agreement that we have suggested. It is the only road for the country,”“The only way out that has remained for Mr Tsipras is to settle on the big national agreement that we have suggested. It is the only road for the country,”
To no-one’s surprise, the Bank of England has voted to leave UK interest rates at their current record low of 0.5%.To no-one’s surprise, the Bank of England has voted to leave UK interest rates at their current record low of 0.5%.
That means borrowing costs have been unchanged since March 2009, before the eurozone crisis even began.That means borrowing costs have been unchanged since March 2009, before the eurozone crisis even began.
Over in Greece, government MPs are feeling bruised after seeing Tsipras effectively given an ultimatum by creditors in Brussels.Over in Greece, government MPs are feeling bruised after seeing Tsipras effectively given an ultimatum by creditors in Brussels.
Paul Mason of Channel 4 News reports:Paul Mason of Channel 4 News reports:
They came, they saw, they had – as one Syriza MP put it to me last night – “their balls handed to them”.They came, they saw, they had – as one Syriza MP put it to me last night – “their balls handed to them”.
@BTabrum @paulmasonnews Veni Vedi Vasectomy?@BTabrum @paulmasonnews Veni Vedi Vasectomy?
Mason argues that the creditor’s offer isn’t “all bad”.Mason argues that the creditor’s offer isn’t “all bad”.
A 1 per cent budget surplus target for this year, in a shrinking economy, looks optimistic – but it is lower than the 3-4 per cent the previous government had been asked for.A 1 per cent budget surplus target for this year, in a shrinking economy, looks optimistic – but it is lower than the 3-4 per cent the previous government had been asked for.
A two-tier VAT rise will raise money from the poorest off; but VAT has to rise in a country like Greece where assets are held offshore, and where getting businesses to pay corporation tax is a strategic problem, and does not balance the books short term.A two-tier VAT rise will raise money from the poorest off; but VAT has to rise in a country like Greece where assets are held offshore, and where getting businesses to pay corporation tax is a strategic problem, and does not balance the books short term.
The hardest details for Greece came when its lenders demanded pension payments to be cut by 1 per cent of GDP. However the deal on offer is reported to say that if Greece does not want to hit pensioners it must hit somebody else, to the same extent.The hardest details for Greece came when its lenders demanded pension payments to be cut by 1 per cent of GDP. However the deal on offer is reported to say that if Greece does not want to hit pensioners it must hit somebody else, to the same extent.
But the big problem is that it doesn’t include any pledges of debt relief, which makes it very hard to persuade Syriza MPs to support it....But the big problem is that it doesn’t include any pledges of debt relief, which makes it very hard to persuade Syriza MPs to support it....
The full piece is worth a read:The full piece is worth a read:
Greece debt crisis: the unsustainable ultimatumGreece debt crisis: the unsustainable ultimatum
Our Athens correspondent, Helena Smith, is hearing that the IMF has let it be known that it “does not mind” if Greece effectively misses its €305m debt repayment deadline tomorrow and “bundles up” loan instalments for the end of the month.Our Athens correspondent, Helena Smith, is hearing that the IMF has let it be known that it “does not mind” if Greece effectively misses its €305m debt repayment deadline tomorrow and “bundles up” loan instalments for the end of the month.
That of course when its current bailout programme ends.That of course when its current bailout programme ends.
The Financial Times has also confirmed that a new meeting between Greece and her creditors will take place tomorrow, after yesterday’s gathering made only limited progress.The Financial Times has also confirmed that a new meeting between Greece and her creditors will take place tomorrow, after yesterday’s gathering made only limited progress.
Peter Spiegel writes:Peter Spiegel writes:
EU leaders have long hoped Mr Tsipras would personally take over negotiations after months of little progress with mid-level officials from the Greek finance ministry.EU leaders have long hoped Mr Tsipras would personally take over negotiations after months of little progress with mid-level officials from the Greek finance ministry.
People briefed on the talks expressed optimism that an outline of a deal could still be reached by the end of the week.People briefed on the talks expressed optimism that an outline of a deal could still be reached by the end of the week.
“Tsipras wants to wrap it up himself,” said one senior official.“Tsipras wants to wrap it up himself,” said one senior official.
Tsipras to resume creditor talks Friday http://t.co/tkQGaKFUXtTsipras to resume creditor talks Friday http://t.co/tkQGaKFUXt
The European Commission is briefing reporters in Brussels now.The European Commission is briefing reporters in Brussels now.
Spokesman Margaritis Schinas says that last night’s meeting between Tsipras and Juncker was constructive, and confirms they will meet again soon.Spokesman Margaritis Schinas says that last night’s meeting between Tsipras and Juncker was constructive, and confirms they will meet again soon.
However, he won’t confirm that they’re meeting tomorrow:However, he won’t confirm that they’re meeting tomorrow:
EU's @MargSchinas won't confirm Friday meeting for Juncker-Tsipras, says further meeting 'in coming days'EU's @MargSchinas won't confirm Friday meeting for Juncker-Tsipras, says further meeting 'in coming days'
'Rumourology' joins paperology in @EU_Commission-speak, via @MargSchinas'Rumourology' joins paperology in @EU_Commission-speak, via @MargSchinas
Don't know where,don't know when, but I know we'll meet again, some sunny day #Tsipras #Juncker https://t.co/0WOYhsoOrCDon't know where,don't know when, but I know we'll meet again, some sunny day #Tsipras #Juncker https://t.co/0WOYhsoOrC
Greek insiders have told us that Juncker and Tsipras will indeed meet tomorrow, as Kathimerini reported earlier.Greek insiders have told us that Juncker and Tsipras will indeed meet tomorrow, as Kathimerini reported earlier.
We’re seeing more quotes from Yanis Varoufakis on the Reuters terminal:We’re seeing more quotes from Yanis Varoufakis on the Reuters terminal:
Last night, Alexis Tsipras told reporters in Brussels not to worry about tomorrow’s €305m payment due to the IMF, arguing that Greece had handled bigger payments in the past.Last night, Alexis Tsipras told reporters in Brussels not to worry about tomorrow’s €305m payment due to the IMF, arguing that Greece had handled bigger payments in the past.
And this tweet may explain his confidence:And this tweet may explain his confidence:
IKA, #Greece's largest social security fund, to decide today to transfer cash reserves of €200 mln to BoG account (via @capitalgr) #imf #ecIKA, #Greece's largest social security fund, to decide today to transfer cash reserves of €200 mln to BoG account (via @capitalgr) #imf #ec
Amid the uncertainty, Greece’s unemployment crisis remains a bleeding wound. The jobless rate was unchanged at 25.6% in March, according to new figures from Elstat.Amid the uncertainty, Greece’s unemployment crisis remains a bleeding wound. The jobless rate was unchanged at 25.6% in March, according to new figures from Elstat.
Elstat reports that the number of Greeks in work actually fell by 16,092 persons compared with February 2015. The unemployment total also fell, by 4,283.Elstat reports that the number of Greeks in work actually fell by 16,092 persons compared with February 2015. The unemployment total also fell, by 4,283.
How can that be? Because 16,751 persons declared themselves inactive - dropping out of the labour market forever.How can that be? Because 16,751 persons declared themselves inactive - dropping out of the labour market forever.
There are now 3,518,858 people employed in Greece, 1,211,507 unemployed, and 3,368,392 classed as inactive.There are now 3,518,858 people employed in Greece, 1,211,507 unemployed, and 3,368,392 classed as inactive.
Finance minister Yanous Varoufakis has told reporters that the Greek government is aiming for a “comprehensive” deal by the end of the month, and also resisting pressure to raise sales tax rates.Finance minister Yanous Varoufakis has told reporters that the Greek government is aiming for a “comprehensive” deal by the end of the month, and also resisting pressure to raise sales tax rates.
Greek FinMin Varoufakis tells reporters there is "no chance" of #Greece moving bulk of its goods & services to top VAT rate of 23% #euroGreek FinMin Varoufakis tells reporters there is "no chance" of #Greece moving bulk of its goods & services to top VAT rate of 23% #euro
#Greece FinMin Varoufakis says govt aims for a comprehensive agreement w the creditors until June 30 and no snap elections ~@parapolitika901#Greece FinMin Varoufakis says govt aims for a comprehensive agreement w the creditors until June 30 and no snap elections ~@parapolitika901
The next few days are absolutely essential, Pierre Moscovici adds, if Greece and creditors are to agree a cash-for-reforms deal in time:The next few days are absolutely essential, Pierre Moscovici adds, if Greece and creditors are to agree a cash-for-reforms deal in time:
EU Economic and Monetary Affairs Commissioner Pierre Moscovici remains convinced that a Greek agreement will be reached in time.EU Economic and Monetary Affairs Commissioner Pierre Moscovici remains convinced that a Greek agreement will be reached in time.
Speaking in Brussels this morning, Moscovici says:Speaking in Brussels this morning, Moscovici says:
“My deep conviction is that we will find a deal on Greece.”“My deep conviction is that we will find a deal on Greece.”
Discussions are fruitful, he says, and good progress is being made.Discussions are fruitful, he says, and good progress is being made.
German 10-year Bund yield flirting with 1% today. Largest sell-off since euro creation. This one will go down in history. And it's not over.German 10-year Bund yield flirting with 1% today. Largest sell-off since euro creation. This one will go down in history. And it's not over.
There are some wild moves in the financial markets this morning, and Greece is only partly to blame.There are some wild moves in the financial markets this morning, and Greece is only partly to blame.
Eurozone bond prices are falling across the board. That follows yesterday’s ECB press conference, where Mario Draghi predicted that volatility was here to stay.Eurozone bond prices are falling across the board. That follows yesterday’s ECB press conference, where Mario Draghi predicted that volatility was here to stay.
That has prompted traders to pile out of bonds, pushing prices down and driving up yields (the interest rate paid to bondholders).That has prompted traders to pile out of bonds, pushing prices down and driving up yields (the interest rate paid to bondholders).
German 10-year bonds are now yielding 0.98% -- a sharp jump. That’s highest since last September, meaning any trader who piled into Bunds this year is sitting on a loss.German 10-year bonds are now yielding 0.98% -- a sharp jump. That’s highest since last September, meaning any trader who piled into Bunds this year is sitting on a loss.
EU bond yields, wonder when was the last time we saw this! pic.twitter.com/JHSfWLfMb0EU bond yields, wonder when was the last time we saw this! pic.twitter.com/JHSfWLfMb0
After an early fall, the euro has now jumped to $1.134. That’s weighing on European stocks, pushing down the German, French, Spanish and Italian markets. The UK is dropping too:After an early fall, the euro has now jumped to $1.134. That’s weighing on European stocks, pushing down the German, French, Spanish and Italian markets. The UK is dropping too:
Connor Campbell, financial analyst at Spread EX, says Greek developments will push the markets around today:Connor Campbell, financial analyst at Spread EX, says Greek developments will push the markets around today:
The Greek PM, for now, is holding firm to the idea that any deal must be based on a proposal coming from, not going to, Greece, with a counter offer from the country expected to land at creditors’ feet at some point before the end of the week.The Greek PM, for now, is holding firm to the idea that any deal must be based on a proposal coming from, not going to, Greece, with a counter offer from the country expected to land at creditors’ feet at some point before the end of the week.
Reports that Tsipras and Juncker will meet again on Friday means things will be left incredibly close to, and maybe actually beyond, the IMF repayment wire [on Friday].Reports that Tsipras and Juncker will meet again on Friday means things will be left incredibly close to, and maybe actually beyond, the IMF repayment wire [on Friday].
Yet one questions if any change in attitude, be it from either side, can occur in such a small space of time; if a deal couldn’t be found on Wednesday, a shift in tone by Friday seems unlikely. Nevertheless, the Eurozone indices are continuing their rollercoaster ride this week, slipping to losses after seeing hope-filled gains yesterday afternoon.Yet one questions if any change in attitude, be it from either side, can occur in such a small space of time; if a deal couldn’t be found on Wednesday, a shift in tone by Friday seems unlikely. Nevertheless, the Eurozone indices are continuing their rollercoaster ride this week, slipping to losses after seeing hope-filled gains yesterday afternoon.
Lots of chatter about Greece this morning:Lots of chatter about Greece this morning:
Tsipras close to accepting troika's fiscal targets - but not the pension & VAT measures to achieve them.Tsipras close to accepting troika's fiscal targets - but not the pension & VAT measures to achieve them.
After more than four months of negotiations, Eurozone and Greece now at least seem to agree that they disagree. Celebrate the progress...After more than four months of negotiations, Eurozone and Greece now at least seem to agree that they disagree. Celebrate the progress...
The Greek proposal for a deal was 46 pages long. The proposal from the European creditors was five pages long #GreeceThe Greek proposal for a deal was 46 pages long. The proposal from the European creditors was five pages long #Greece
Greece’s stock market fell sharply at the start of trading in Athens, pushing the ATG index down over 3%.Greece’s stock market fell sharply at the start of trading in Athens, pushing the ATG index down over 3%.
Athens Stock Exchange General Index falls as much as 3.3% this morning, now down 2.7% #Greece pic.twitter.com/PJz6IMSH5SAthens Stock Exchange General Index falls as much as 3.3% this morning, now down 2.7% #Greece pic.twitter.com/PJz6IMSH5S
Yesterday it jumped 4%, on hopes of a breakthrough in Brussels.Yesterday it jumped 4%, on hopes of a breakthrough in Brussels.
Hugo Dixon, Editor-at-Large at Reuters News, reckons there are four ways this crisis will play out:Hugo Dixon, Editor-at-Large at Reuters News, reckons there are four ways this crisis will play out:
Four scenarios now for Greece: 1. Tsipras agrees deal with creditors, can't sell to Syriza hardliners, calls snap elections and wins. GoodFour scenarios now for Greece: 1. Tsipras agrees deal with creditors, can't sell to Syriza hardliners, calls snap elections and wins. Good
2 Tsipras agrees deal with creditors, keeps Syriza hard lines on board, fails to implement properly and crisis returns in a few months. Poor2 Tsipras agrees deal with creditors, keeps Syriza hard lines on board, fails to implement properly and crisis returns in a few months. Poor
3 Tsipras can't do deal, defaults, and after capital controls imposed hands over to national salvation government which sues for peace. Bad3 Tsipras can't do deal, defaults, and after capital controls imposed hands over to national salvation government which sues for peace. Bad
4 Tsipras can't do deal, defaults, keeps power (maybe after new elections) and continues confrontation. Terrible.4 Tsipras can't do deal, defaults, keeps power (maybe after new elections) and continues confrontation. Terrible.
It’s all go this morning!It’s all go this morning!
Dow Jones newswires is reporting that the Athens government is planning to make a new counter-offer, having ‘converged’ with its creditors on some issues last night.Dow Jones newswires is reporting that the Athens government is planning to make a new counter-offer, having ‘converged’ with its creditors on some issues last night.
That may explain why Alexis Tsipras will meet with Juncker on Friday.That may explain why Alexis Tsipras will meet with Juncker on Friday.
#Greece, creditors, converge on some measures, Greek PM Tsipras to make counter offer- Officials (Dow Jones)#Greece, creditors, converge on some measures, Greek PM Tsipras to make counter offer- Officials (Dow Jones)
That convergence probably applies to the primary surplus targets (creditors are offering less onerous surpluses, starting at 1% this year, rising to 2%, then 3%, then 3.5% in 2017)That convergence probably applies to the primary surplus targets (creditors are offering less onerous surpluses, starting at 1% this year, rising to 2%, then 3%, then 3.5% in 2017)
Greek jitters are hitting the euro this morning too, flags up Ipek Ozkardeskaya, market analyst at London Capital Group.Greek jitters are hitting the euro this morning too, flags up Ipek Ozkardeskaya, market analyst at London Capital Group.
The single currency has dropped by 0.3% against the US dollar to $1.1232, from $1.1274 (a two-week high).The single currency has dropped by 0.3% against the US dollar to $1.1232, from $1.1274 (a two-week high).
#EURUSD down to 1.1232 as #Tsipras rejects proposals, saying 'realistic proposals' are those of the #Greek government :)#EURUSD down to 1.1232 as #Tsipras rejects proposals, saying 'realistic proposals' are those of the #Greek government :)
Here’s the official line from Alexis Tsipras this morning for English readers:Here’s the official line from Alexis Tsipras this morning for English readers:
Our proposal continues to be the only realistic and constructive proposal. The discussions will continue. #Greece pic.twitter.com/VnxYbqxK9jOur proposal continues to be the only realistic and constructive proposal. The discussions will continue. #Greece pic.twitter.com/VnxYbqxK9j
European stock markets have fallen at the start of trading, as traders react to last night’s inconclusive Greek meeting.European stock markets have fallen at the start of trading, as traders react to last night’s inconclusive Greek meeting.
In London, the FTSE 100 swiftly shed 56 points to 6894, down 0.8%, with almost every share in the red:In London, the FTSE 100 swiftly shed 56 points to 6894, down 0.8%, with almost every share in the red:
Every blue-chip share on France’s CAC index is down, too:Every blue-chip share on France’s CAC index is down, too:
All 40 in the CAC trading in the red. Sacre bleu!All 40 in the CAC trading in the red. Sacre bleu!
Greece’s Kathimerini newspaper is reporting that Alexis Tsipras will meet Jean-Claude Juncker again on Friday, in another attempt to break the deadlock.Greece’s Kathimerini newspaper is reporting that Alexis Tsipras will meet Jean-Claude Juncker again on Friday, in another attempt to break the deadlock.
Tsipras due to meet Juncker & Dijsselbloem again on Friday after last night's inconclusive talks in Brussels, reports @Elbarbie #GreeceTsipras due to meet Juncker & Dijsselbloem again on Friday after last night's inconclusive talks in Brussels, reports @Elbarbie #Greece
Greece’s Deputy Shipping Minister has warned this morning that the government will not ‘surrender’ to its creditors.Greece’s Deputy Shipping Minister has warned this morning that the government will not ‘surrender’ to its creditors.
Thodoris Dritsas told Greek TV that:Thodoris Dritsas told Greek TV that:
“What appears to have been discussed and to have been proposed by Mr. Juncker during his meeting with the Greek prime minister is beneath (our) expectations in every way.”“What appears to have been discussed and to have been proposed by Mr. Juncker during his meeting with the Greek prime minister is beneath (our) expectations in every way.”
“If reports are confirmed, obviously we cannot accept them.”“If reports are confirmed, obviously we cannot accept them.”
Good morning.Good morning.
Greece’s future remains as confused as ever, after Wednesday night’s crunch meeting in Brussels between prime minister Alexis Tsipras and EC president Jean-Claude Juncker broke up without a deal.Greece’s future remains as confused as ever, after Wednesday night’s crunch meeting in Brussels between prime minister Alexis Tsipras and EC president Jean-Claude Juncker broke up without a deal.
After speaking for more than four hours, Tsipras emerged after midnight to announce that Greece couldn’t accept some of the proposals put together by its creditors.After speaking for more than four hours, Tsipras emerged after midnight to announce that Greece couldn’t accept some of the proposals put together by its creditors.
Instead, he argued, any deal to unlock bailout funds must be based on his own side’s offer.Instead, he argued, any deal to unlock bailout funds must be based on his own side’s offer.
As he put it:As he put it:
“The realistic proposals on the table are the proposals of the Greek government.”“The realistic proposals on the table are the proposals of the Greek government.”
And Tsipras has just tweeted that discussions will continue....And Tsipras has just tweeted that discussions will continue....
Η πρόταση μας παραμένει η μόνη ρεαλιστική & εποικοδομητική πρόταση.Οι συζητήσεις θα συνεχιστούνhttp://t.co/GqE61SOxzF pic.twitter.com/jdB2IgcfAAΗ πρόταση μας παραμένει η μόνη ρεαλιστική & εποικοδομητική πρόταση.Οι συζητήσεις θα συνεχιστούνhttp://t.co/GqE61SOxzF pic.twitter.com/jdB2IgcfAA
The meeting wasn’t a disaster - according to Tsipras, the two sides are “very close” to agreeing new fiscal targets, after the creditors proposed lower primary surplus goals.The meeting wasn’t a disaster - according to Tsipras, the two sides are “very close” to agreeing new fiscal targets, after the creditors proposed lower primary surplus goals.
But there appears to be less consensus on pension reforms and VAT reform, with Greece refusing to roll over and accept a five-page list of proposals created by the International Monetary Fund, the European Central Bank and the European Commission.But there appears to be less consensus on pension reforms and VAT reform, with Greece refusing to roll over and accept a five-page list of proposals created by the International Monetary Fund, the European Central Bank and the European Commission.
#grexit juncker, dijsselbloem, wieser gave tsipras 5-page draft for SLA by june 14. greeks happier with prim surplus http://t.co/0BJW70q7xv#grexit juncker, dijsselbloem, wieser gave tsipras 5-page draft for SLA by june 14. greeks happier with prim surplus http://t.co/0BJW70q7xv
#Greece Tsipras: there wr proposals we agree with & others we can't accept (VAThike in electricity, scrap povbenefit https://t.co/cO0LdeKRv1#Greece Tsipras: there wr proposals we agree with & others we can't accept (VAThike in electricity, scrap povbenefit https://t.co/cO0LdeKRv1
If you missed the action, it’s all in Wednesday’s liveblog:If you missed the action, it’s all in Wednesday’s liveblog:
Related: Greek crisis meeting ends without a deal - as it happenedRelated: Greek crisis meeting ends without a deal - as it happened
What happens now?What happens now?
According to the EC, both sides will hold more “intense work” in an attempt to reach a joint position soon. It said:According to the EC, both sides will hold more “intense work” in an attempt to reach a joint position soon. It said:
It was a good constructive meeting. Progress was made in understanding each other’s positions on the basis of various proposals. It was agreed they will meet again. Intense work will continue.It was a good constructive meeting. Progress was made in understanding each other’s positions on the basis of various proposals. It was agreed they will meet again. Intense work will continue.
But the failure to make a breakthrough last night is still disappointing, with a €305m payment to the IMF due tomorrow, and just 26 days until Greece’s bailout programme expires.But the failure to make a breakthrough last night is still disappointing, with a €305m payment to the IMF due tomorrow, and just 26 days until Greece’s bailout programme expires.
I’ll be tracking all the action and reaction through the day, along with other events across the world economy and the financial markets. That will include the Bank of England’s interest rate decision at noon UK time (we’re braced for a dramatic ‘no change)....I’ll be tracking all the action and reaction through the day, along with other events across the world economy and the financial markets. That will include the Bank of England’s interest rate decision at noon UK time (we’re braced for a dramatic ‘no change)....