This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2015/jun/25/greece-bailout-crisis-last-minute-search-deal

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
Greece bailout crisis: talks enter last-minute search for a deal Greece bailout talks resume in bid for last-minute deal
(about 4 hours later)
Crisis talks between Greece and its creditors have resumed in Brussels, in a desperate search for compromise. Crisis talks between Greece and its creditors are underway in Brussels, in a desperate search for a deal to prevent Greece from collapsing into bankruptcy.
The latest round of technical talks comes ahead of an emergency meeting on Thursday of the 19 finance ministers of the eurozone – the fourth in eight days – and a long-planned summit of all 28 EU leaders. Eurozone finance ministers have gathered in Brussels for an emergency meeting –their fourth in eight days – ahead of a long-planned summit of all 28 EU leaders.
Eurozone ministers were expected to work through Wednesday night to resolve the impasse over the Greek bailout, but the meeting broke up after little more than an hour, when it became clear both sides remained far apart on how to fix the Greek economy. Hopes of a breakthrough were falling as the ministers meeting began. Germany’s finance minister, Wolfgang Schäuble, said Greece had moved backwards. The chair of the Eurogroup, Jeroen Dijsselbloem, said ministers would be waiting to hear ideas from the Greeks.
The Greek prime minister, Alexis Tsipras, met the heads of the International Monetary Fund, European Central Bank and European commission late on Wednesday night, but talks ended in the early hours of Thursday with Greece “remaining firm on its position”, according to a Greek government official. Tsipras had already met the same institutions for six hours earlier on Wednesday, where he resisted demands for deeper spending cuts. EU officials are insisting a deal is still in reach, although Athens has not signed up to the latest proposal from creditors.
The Greek prime minister, Alexis Tsipras, spent more than three hours in a meeting with the leaders of the International Monetary Fund, European Central Bank and European commission on Thursday morning, but left without an agreement.
Rumours were swirling that Greece’s creditors were going to present Athens with an ultimatum to accept their austerity plan in exchange for releasing €7.2bn (£5.1bn) in desperately needed bailout funds.
Related: Greek crisis: Bailout talks resume in race for a deal - live updatesRelated: Greek crisis: Bailout talks resume in race for a deal - live updates
Greece’s lenders are pressing Athens to accept more austerity in exchange for releasing €7.2bn (£5.1bn) in desperately needed bailout funds. Tsipras, who has been seeking to wrest back control over the Greek economy, has accused the lenders of not wanting a deal and serving “special interests” in Greece. But one EU diplomat said there was no take-it-or-leave-it deal and institutions remained available for further discussion.
As Wednesday’s talks ended in stalemate, a senior Syriza official accused the creditors of trying to blackmail Greece. “The lenders’ demand to bring annihilating measures back to the table shows that the blackmail against Greece is reaching a climax,” Nikos Filis, the Syriza’s parliamentary spokesman told Mega TV, reported Reuters. The two sides still appear to be far apart, however. Greece’s creditors want the Tsipras government to make deeper spending cuts, as well as faster and more sweeping reforms to the Greek pension system, according to a leaked version of the creditors’ counter-proposals that is very similar to an earlier version rejected by the Greeks on Wednesday.
The technical talks in Brussels are aimed at preparing the way for the finance ministers’ meeting at 1pm local time (1200 BST). Arriving for the talks, Austria’s finance minister, Hans Jörg Schelling, said that Sunday was the final deadline to reach an agreement with Greece, although he hoped to get a deal done on Thursday afternoon ahead of the EU leaders’ summit.
“Where there is a will, there is a way,” tweeted Pierre Moscovici, European commissioner for economic affairs.“Where there is a will, there is a way,” tweeted Pierre Moscovici, European commissioner for economic affairs.
Eurozone ministers had been expected to work through Wednesday night to resolve the impasse over the Greek bailout, but the meeting broke up after little more than an hour, when it became clear both sides remained far apart on how to fix the Greek economy.
Greece’s lenders are pressing Athens to accept more austerity in exchange for continuing the bailout programme worth €240bn (£171bn). Tsipras, who has been seeking to wrest back control over the Greek economy, has accused the lenders of not wanting a deal and serving “special interests” in Greece.
As the talks stagger on , a senior Syriza official accused the creditors of trying to blackmail Greece. “The lenders’ demand to bring annihilating measures back to the table shows that the blackmail against Greece is reaching a climax,” Nikos Filis, the Syriza’s parliamentary spokesman told Mega TV, reported Reuters.
European leaders hope to rubber-stamp a deal before the end of their two-day summit, which starts on Thursday afternoon.European leaders hope to rubber-stamp a deal before the end of their two-day summit, which starts on Thursday afternoon.
The German chancellor, Angela Merkel, has been reluctant to allow Greek talks to derail the long-planned summit, where leaders will discuss how to deal with thousands of migrants fleeing poverty and war and hear a presentation from the British prime minister, David Cameron, on his hopes for EU reform.The German chancellor, Angela Merkel, has been reluctant to allow Greek talks to derail the long-planned summit, where leaders will discuss how to deal with thousands of migrants fleeing poverty and war and hear a presentation from the British prime minister, David Cameron, on his hopes for EU reform.
Uncertainty over the Greek crisis weighed on European stock markets. In early trading the FTSE fell by 0.4%, the French CAC index slid by 0.9% while Germany’s Dax was down by 0.5%. Shares in Spain and Italy were 0.6% and 0.7% lower, respectively. In Japan, the Nikkei index fell 0.3%, after optimism about the Greek debt crisis lifted it to its highest level since 1996 earlier in the week. The Dow Jones closed on Wednesday nearly 1% lower, despite better-than-expected growth data for the US economy.
Carl Weinberg, chief economist at High Frequency Economics, told his investors to expect more conflicting reports, both positive and negative. “We have no idea how this will end.”
Membership Event: Guardian Newsroom: Can Greece be saved?Membership Event: Guardian Newsroom: Can Greece be saved?
Carl Weinberg, chief economist at High Frequency Economics, told his investors to expect more conflicting reports, both positive and negative about the Greek crisis. “We have no idea how this will end.”
Time is running out fast, with Greece’s eurozone bailout set to expire on Tuesday, when it is also due to repay €1.6bn to the IMF.Time is running out fast, with Greece’s eurozone bailout set to expire on Tuesday, when it is also due to repay €1.6bn to the IMF.
The Tuesday deadline is doubly pressing because the ECB, which is keeping the Greek banking system on life support, has indicated it will not support banks if the bailout programme expires without a new agreement in place. Without ECB support, Greek banks are expected to buckle, which would force the Tsipras government to impose capital controls and threaten an exit from the eurozone.The Tuesday deadline is doubly pressing because the ECB, which is keeping the Greek banking system on life support, has indicated it will not support banks if the bailout programme expires without a new agreement in place. Without ECB support, Greek banks are expected to buckle, which would force the Tsipras government to impose capital controls and threaten an exit from the eurozone.
The ECB, which is holding daily meetings on Greece, has pumped around €89bn into the Greek financial system to keep banks afloat. On Thursday it decided to maintain emergency liquidity funding at current levels, suggesting that the pace of withdrawals from Greek banks may have ebbed.
Even if a deal is finally struck in Brussels, Tsipras has to get the compromise through a rebellious and recalcitrant parliament. The German and other eurozone parliaments also have to ratify the package before it can be implemented, raising questions as to whether all this can be accomplished before the Tuesday deadline.Even if a deal is finally struck in Brussels, Tsipras has to get the compromise through a rebellious and recalcitrant parliament. The German and other eurozone parliaments also have to ratify the package before it can be implemented, raising questions as to whether all this can be accomplished before the Tuesday deadline.
Many observers fear that any deal emerging from Brussels may only be a temporary stop-gap that does little to ease the massive debt burden weighing on the Greek economy.
“Without a substantial form of debt relief, which looks unlikely in an initial agreement, Greece’s debt ratio will remain unsustainably high and the crisis will continue,” said Jonathan Loynes, chief European economist at Capital Economics.