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| Eurozone calls on Athens to get serious over Greece debt crisis | Eurozone calls on Athens to get serious over Greece debt crisis |
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| Eurozone leaders have called on Greece to make “serious” proposals at an emergency summit if it wants to stay in the currency union. | Eurozone leaders have called on Greece to make “serious” proposals at an emergency summit if it wants to stay in the currency union. |
| The summit was convened after Greeks issued a stunning rejection to a eurozone-drafted bailout plan on Sunday and is seen as one of the last real chances for a deal to stop Greece crashing out of the euro. | The summit was convened after Greeks issued a stunning rejection to a eurozone-drafted bailout plan on Sunday and is seen as one of the last real chances for a deal to stop Greece crashing out of the euro. |
| In a coordinated press statement, the leaders of France and Germany called on Greece to come up with “serious and credible proposals” at Tuesday’s summit consistent with its wish to stay in the eurozone. | In a coordinated press statement, the leaders of France and Germany called on Greece to come up with “serious and credible proposals” at Tuesday’s summit consistent with its wish to stay in the eurozone. |
| “We are now waiting for precise proposals from the Greek prime minister, for a programme that will allow Greece to return to prosperity. It is urgent to have these proposals so we can find a way out of this situation,” said the German chancellor, Angela Merkel, after talks with her counterpart, the French president, François Hollande, on Monday night. | “We are now waiting for precise proposals from the Greek prime minister, for a programme that will allow Greece to return to prosperity. It is urgent to have these proposals so we can find a way out of this situation,” said the German chancellor, Angela Merkel, after talks with her counterpart, the French president, François Hollande, on Monday night. |
| Greek banks will stay shut on Tuesday and Wednesday, although it is far from clear they will be able to reopen on Thursday, as money drains out of the financial system. | Greek banks will stay shut on Tuesday and Wednesday, although it is far from clear they will be able to reopen on Thursday, as money drains out of the financial system. |
| The European Central Bank raised the pressure on Greek banks on Monday night, by tightening access to emergency credit. | The European Central Bank raised the pressure on Greek banks on Monday night, by tightening access to emergency credit. |
| The Frankfurt-based institution has pumped €89bn (£63bn) into the Greek financial system in recent months, but Greek banks can only tap this emergency aid by putting up collateral, such as Greek government bonds. | The Frankfurt-based institution has pumped €89bn (£63bn) into the Greek financial system in recent months, but Greek banks can only tap this emergency aid by putting up collateral, such as Greek government bonds. |
| The bank said on Monday it was “adjust[ing] the haircuts accepted on collateral”, meaning that Greek assets are now deemed more risky, to secure smaller amounts of emergency funds. | The bank said on Monday it was “adjust[ing] the haircuts accepted on collateral”, meaning that Greek assets are now deemed more risky, to secure smaller amounts of emergency funds. |
| The level of emergency funding remains unchanged at €89bn, despite a plea from the central bank in Athens for an extra €3bn. The request was first reported by Bloomberg. | The level of emergency funding remains unchanged at €89bn, despite a plea from the central bank in Athens for an extra €3bn. The request was first reported by Bloomberg. |
| The ECB said its governing council is “closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area”. | The ECB said its governing council is “closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area”. |
| The Greek prime minister, Alexis Tsipras, pressed for capital controls to be lifted, when he spoke to the head of the ECB, Mario Draghi, on Monday. After a hectic day of meetings with Greek party leaders, Tsipras also spoke to Christine Lagarde of the International Monetary Fund. She told him the IMF was no longer able to provide money to Greece until it clears its arrears, following last week’s default on a €1.6bn loan repayment. | The Greek prime minister, Alexis Tsipras, pressed for capital controls to be lifted, when he spoke to the head of the ECB, Mario Draghi, on Monday. After a hectic day of meetings with Greek party leaders, Tsipras also spoke to Christine Lagarde of the International Monetary Fund. She told him the IMF was no longer able to provide money to Greece until it clears its arrears, following last week’s default on a €1.6bn loan repayment. |
| Tsipras is expected to table new proposals to the eurozone summit to secure desperately needed financial aid. These “new” proposals are likely to be based on a plan he submitted last week, when he called for a €29bn two-year loan from the eurozone’s permanent bailout fund and promised to sign up to economic reforms that would bring further austerity to Greece. | Tsipras is expected to table new proposals to the eurozone summit to secure desperately needed financial aid. These “new” proposals are likely to be based on a plan he submitted last week, when he called for a €29bn two-year loan from the eurozone’s permanent bailout fund and promised to sign up to economic reforms that would bring further austerity to Greece. |
| Despite the departure of Greece’s outspoken finance minister, Yanis Varoufakis, reaching a deal will not be easy. Germany’s finance minister, Wolfgang Schäuble, who clashed often with Varoufakis, indicated the path ahead would be no easier for his successor. | |
| Euclid Tsakalotos, an Oxford-educated economics professor, was sworn in as Greek finance minister on Monday night, having already served as chief negotiator on the debt crisis for the Syriza-led government. | Euclid Tsakalotos, an Oxford-educated economics professor, was sworn in as Greek finance minister on Monday night, having already served as chief negotiator on the debt crisis for the Syriza-led government. |
| The 19 finance ministers of the eurozone meet in Brussels at 1pm (noon BST) to prepare the way for the gathering of EU leaders scheduled for 6pm. | The 19 finance ministers of the eurozone meet in Brussels at 1pm (noon BST) to prepare the way for the gathering of EU leaders scheduled for 6pm. |
| Hopes of a breakthrough are not high. Most bank analysts see a Greek exit from the eurozone as the most likely scenario. | Hopes of a breakthrough are not high. Most bank analysts see a Greek exit from the eurozone as the most likely scenario. |
| The Fitch rating agency is not even expecting a deal by 20 July when Greece must make a €3.5bn debt repayment to the ECB. If Greece misses this payment, the ECB would most likely declare its banks insolvent, cut off all emergency aid, triggering a swift euro exit. | The Fitch rating agency is not even expecting a deal by 20 July when Greece must make a €3.5bn debt repayment to the ECB. If Greece misses this payment, the ECB would most likely declare its banks insolvent, cut off all emergency aid, triggering a swift euro exit. |
| Analysts at the Standard and Poor’s think the referendum result raised the chances that Greece will leave the eurozone, although the rating agency thinks the negative impact on other vulnerable economies in southern Europe would be limited. | Analysts at the Standard and Poor’s think the referendum result raised the chances that Greece will leave the eurozone, although the rating agency thinks the negative impact on other vulnerable economies in southern Europe would be limited. |
| “We think it’s more likely than not now that ‘Grexit’ would happen because it’s just so difficult for Tsipras to row back after such a victory to what was on the table before,” S&P’s senior European sovereign analyst Moritz Kraemer told Reuters. | “We think it’s more likely than not now that ‘Grexit’ would happen because it’s just so difficult for Tsipras to row back after such a victory to what was on the table before,” S&P’s senior European sovereign analyst Moritz Kraemer told Reuters. |
| However, he did not expect to be downgrading the credit ratings of other high-debt eurozone countries. | However, he did not expect to be downgrading the credit ratings of other high-debt eurozone countries. |